KEY POINTS:
A parliamentary committee considering the housing affordability problem says more can be done to free up land, streamline processes and plan for the future.
The commerce select committee report on its inquiry into housing affordability in New Zealand was released today.
It made 10 key recommendations for the Government to:
* take measures to ensure local councils and landowners were encouraged to plan for, and release for sale, land for subdivision;
* consider how more flexible financial support practices and council zoning could use Maori land better;
* encourage the use of alternative shared ownership and financing arrangements;
* seek better local authority processes to reduce compliance costs - the report raised concerns about costs and delays getting consents;
* conduct a further review of building legislation to improve practical application to new building consents for new homes. The report said while requirements weren't too hard the way they were set out in legislation was difficult to understand and off-putting;
* continue to support "third-sector" (groups such as charities, councils, church groups, iwi, community trusts) involvement in housing supply;
* continue to look at ways to reduce construction costs;
* work with communities affected by social housing development;
* take into account changing demographics, particularly Maori and Pacific peoples, and household make-ups, when considering affordable housing mechanisms;
* encourage Auckland Regional Council (the inquiry did a case study on Auckland) to assess carefully interventions that constrain the supply of land for new housing, while taking into account issues such as infrastructure.
The report said submitters were divided on tax treatment of property investment; there were those that thought benefits such as expenses and losses coming off tax bills and the largely untaxed capital gain contributed to demand and raised prices, but others said any change would hurt tenants and deductions homeowners claimed were equivalent to those business would claim.
That group pointed out that other countries which changed tax treatment for property had not halted price rises.
Questions about the Reserve Bank and interest rates were raised but another committee was holding an inquiry into monetary policy which would address them.
- NZPA
