Housing in spotlight

GARDEN SUBURB: A photo from a series prepared by the Prime Minister's Department in 1947 to attract British migrants. The Evans family stroll around the Savage Crescent Conservation Area. THIS photo was taken from 86 Savage Crescent sometime between 1943-1944. PHOTOS: PALMERSTON NORTH LIBRARIES AND COMMUNITY SERVICES

On Saturday the Labour Party reminded people about the need for more affordable housing as they celebrated their 100th birthday near Savage Crescent.

Locals came together and spoke of their experiences with Savage Crescent - the first state housing project in provincial New Zealand, planned in 1937.

The Labour Party's official birthday was July 7 and the first Labour government was formed in 1935.

Savage Crescent, named after the first Labour Prime Minister Michael Joseph Savage, was designed to help locals buy their first homes.

Palmerston North MP Iain Lees Galloway said they celebrated what the Labour Party was about -- putting a roof over people's heads, education, jobs and hope for the future.

"We are one big happy family who represent our community and every walk of life, who care for one another. At the moment New Zealand has many challenges that they are facing and we believe no one but the Labour Party can face the need for more houses, and affordable homes for people to buy."

New Zealand is reportedly facing a housing crisis. The Reserve Bank is currently considering further restrictions on property investors and both ANZ and Westpac announced last week they will not lend to oversees-based buyers of New Zealand properties.

From 2006 to 2016 statistics show New Zealand house prices rose 65 per cent. This has been attributed to a lack of available housing, development restrictions, migration and low income rates for investors.

Prime Minister John Key has said there was no housing crisis but National says they are committed to addressing the shortage.

According to housing minister Nick Smith, their National Policy Statement on Urban Development Capacity will require local councils to ensure land supply for housing keeps up with projected growth in their region. They will also be required to monitor housing data, account for the difference between planned and commercial developments and provide for over-supply.

"This new policy is about tackling the long-term root cause of New Zealand's housing affordability problems," he said. "Insufficient land supply in Auckland has seen median section prices rise from $100,000 in 1990 to $450,000 now - an increase of 350 per cent."

"In the same time, building costs rose 78 per cent and the Consumer Price Index 71 per cent. The high section price compounds the affordability problem because the built home will also be highly priced."

He said councils must also ensure consenting processes are customer focused and recognise the national significance of providing sufficient land.

"This urban development policy is carefully nuanced to the different growth pressures across New Zealand's towns and cities. This policy is about a culture change to support development that connects planning decisions to economics, ensures plans are regularly updated and recognises the national importance of housing."