Housing ministers Chris Bishop and Tama Potaka announce social housing funding

Housing ministers Chris Bishop and Tama Potaka have announced new social housing funding in Kilbirnie this morning.

Earlier this week, Bishop confirmed the Government will scrap the first home grant scheme, a subsidy of up to $10,000 that some first home buyers can access to put towards a first home deposit.

Bishop said axing the scheme was expected to generate savings of $245 million over a four-year (2024-28) forecast period “with a minimal effect on home ownership rates”.

The Government is directing $140m of that money to Community Housing Providers (CHPs), funding them to deliver 1500 new social housing places over the forecast period. The remaining money will be spent later as the housing places must be funded in the outyears.

“Earlier this week I was proud to announce that Budget 2024 allocates $140 million to fund 1500 new social housing places which will be provided by Community Housing Providers (CHPs),” Bishop said in a statement.

“This new investment underlines the Government’s commitment to housing New Zealanders in need in a fiscally sustainable way.”

“The social housing waitlist is over 25,000 applicants and too many Kiwi families are living in emergency housing motels or sleeping on relatives’ couches while they wait to move into warm, dry, stable housing,” Potaka said.

“The government has made the tough but fair decision to reprioritise money currently spent on first home grants and redirect it to community housing providers to help address the lack of social houses.”

Bishop and Potaka made the announcement while visiting Dwell Housing Trust’s social housing development in Kilbirnie, which is a good example of a community housing provider and a development that will be eligible for funding with the new places.

The Ministry of Housing and Urban Development will communicate revised criteria for the 500 places to Community Housing Providers by 30 June 2024.