News

No new moves on housing market: Minister

The Government has disclosed there are no new measures under consideration to cool the housing market.

Tuesday, October 12th 2021

Instead, the Government will rely mainly on policies that are already in place. 

The comments came from the Minister of Finance Grant Robertson. He was answering questions while unveiling the Government financial accounts for the year to June 30 2021.

Those accounts showed a strong rebound from forecasts as recently as those of the Budget in May.

There was a deficit of  $4.6 billion, far better than the $10.6 billion deficit predicted in the Budget.

Net debt was relatively restrained as well, at 30% of GDP, compared with a forecast 34%.

During questioning, Robertson faced stiff challenges about the housing market as well as the Government accounts. 

That market rose 26.3% in a year, according to the most recent figures from QV, and was the least affordable it has even been, according to CoreLogic.

Robertson responded by saying those figures had to be looked at carefully.

He said data from the major banks, the Reserve Bank and Treasury agreed the monthly rate of increase in house prices was beginning to ease off. 

“Everybody is continuing to accept that the impact of both the Government's policies and the Reserve Bank's policies will have that effect.”

The Government earlier this year tried to cool the housing market by removing tax deductability from rental properties except for new builds, and by assisting with the cost of developing infrastructure around housing developments. 

Robertson said the impact of those changes were only now starting to come into effect, and this process would continue.

But he said there had already been a rise in building consents to what he said were record levels.

But these reforms were definitely the end of the matter for now. 

“At this point we are not proposing any major changes in the tax area or anything like that.

“We will continue to monitor the situation …...  but the changes that we made in March are really it for now.”

Comments

No comments yet

Heartland Bank - Online 1.85
HSBC Premier 2.19
Kainga Ora - First Home Buyer Special 2.25
HSBC Special 2.25
SBS Bank Special 2.55
China Construction Bank Special 2.65
Kainga Ora 2.88
ICBC 2.89
TSB Special 2.94
First Credit Union Special 2.95
Resimac 2.98
Heartland Bank - Online 2.35
HSBC Premier 2.45
China Construction Bank Special 2.65
Resimac 2.79
SBS Bank Special 2.95
Select Home Loans 2.99
Nelson Building Society 3.24
Kainga Ora 3.28
ICBC 3.29
TSB Special 3.40
First Credit Union Special 3.45
China Construction Bank Special 2.99
HSBC Premier 3.19
Select Home Loans 3.54
Resimac 3.54
TSB Special 3.94
SBS Bank Special 3.95
ICBC 4.09
Kainga Ora 4.22
Bluestone 4.29
SBS Bank 4.45
The Co-operative Bank - Owner Occ 4.49
ANZ Blueprint to Build 1.68
ASB Back My Build 2.04
Heartland Bank - Online 2.25
Resimac 3.39
Select Home Loans 3.49
Bluestone 3.74
Kiwibank Special 3.75
Kiwibank 4.00
Kiwibank - Offset 4.00
ICBC 4.15
Kainga Ora 4.43

More Stories

House price growth on the downward slide

Thursday, October 28th 2021

House price growth on the downward slide

House price growth has dropped from a quarterly rate of 8.1% in April to 4.8% by September.

Tribunal: Anti-social behaviour – tenancy terminated

Monday, October 25th 2021

Tribunal: Anti-social behaviour – tenancy terminated

A tenant who cut the Sky cable, removed fuses from the fuse box and put them back incorrectly, and tagged items on the premises has had his periodic tenancy terminated.

Investor juggernaut slowly grinding down

Friday, October 22nd 2021

Investor juggernaut slowly grinding down

Property buying by mortgaged investors is back down to the levels just before the loan-to-value restrictions were lifted in the second quarter last year, which sparked investor demand back into life.

FOMO haunts property buyers

Wednesday, October 20th 2021

FOMO haunts property buyers

Fear of missing out (FOMO) is rising in the residential property market. Sally Lindsay reviews the figures from Tony Alexander and REINZ.