Voting is underway in the New Zealand 2020 election. Explore the main parties’ pledges at Policy.nz, but here’s a whistle-stop tour of what’s on offer in the world of housing policies. Watch the video below, produced by Alex from Prosperity Finance, to compare the difference between National’s and Labour’s housing policies.

The Housing Policies: Compare Labour with National – NZ Election 2020

Video Timeline 1. Labour’s housing policy – 00:53 2. National’s housing policy – 04:42

1. Labour’s housing policy

Labour party says, if re-elected, they will continue to their progress with the five-point plan to support new housing during the economic uncertainty of COVID-19. Here’s the recap:

(1) New fund to support housing and construction sector

Labour promises to support the construction sector through establishing a $350 million Residential Development Response Fund, minimising the economic impact from Covid-19. The fund will enable builders and developers to apply for support to help them get on with the job. Here’s the reference: https://www.beehive.govt.nz/release/new-fund-support-housing-and-construction-sector

(2) 18,000 additional public and transitional houses will be delivered by the year 2024

(3) First home buyers will continue to benefit from First Home Grants and Loans, progressive home ownership and KiwiBuild

Buying a first home takes financial commitment and hard work, but you may be able to get there faster thanks to the assistance from the government such as:

• First Home Grant: If you’re a first home buyer and you’ve contributed to KiwiSaver for at least three years, you may be eligible to apply for a First Home Grant of up to $10,000. https://kaingaora.govt.nz/home-ownership/first-home-grant/
• First Home Loan: Finding the deposit can be a struggle for first home buyers, with many lenders requiring a minimum 20% deposit. But First Home Loans only require 5% deposit, which makes it much easier to get into your first home. https://kaingaora.govt.nz/home-ownership/first-home-loan/
• Progressive Home Ownership: A $400 million fund is established to support between 1,500 and 4,000 New Zealand families to step into home ownership. https://www.hud.govt.nz/residential-housing/progressive-home-ownership/
• KiwiBuild: Designed to give more New Zealanders the chance to buy their home, Kiwibuild may be an affordable choice for you. https://www.kiwibuild.govt.nz/

(4) The Construction Sector, a joint commitment from government and industry, will be continuing to improve productivity.

Launched in April 2019, the Accord was made up of 13 sector leaders from across industry and government, working together to build a high performing construction. https://www.constructionaccord.nz/the-accord/#:~:text=The%20Construction%20Sector%20Accord%20is,for%20a%20better%20New%20Zealand

(5) Resource Management Act will be replaced to reduce cost and simplify the process, eliminating the barriers to residential construction

2. National’s housing policy

(1) National promises to amend the Resource Management Act (RMA) in their first 100 days if elected, creating a better foundation for residential construction

They will pass emergency legislation in their first 100 days, including:

• Require councils to immediately open land zone for urban development that are worth of 30 years’ growth.
• Suspend the appeals process, enabling district plans to be processed as planned.
• Suspend requirements for infrastructure to be built before zoning.
• Streamline the resource consenting process.

(2) Repeal the Resource Management Act in their first term and replaced it with a new Planning and Development Act and an Environmental Standards Act.

(3) Build more social houses through allocating $1 billion of capital funding.

(4) Progress a rent-to-own or shared equity scheme to support first home buyers.

(5) Amend the public housing tenancy review process and address the State Housing waiting list.

Prosperity Finance – loan help

We are mortgage broker in New Zealand. We can assess your situation for free and give you an indication of how much you can afford to borrow. Call us at 09 930 8999 for a no-obligation chat with our adviser. Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.