Welcome Home Loans Abolished

The Alliance believes the new housing policy announced by the National government will effectively abolish the Welcome Home Loan scheme.

Technically the scheme will still exist, but gutted of the key element that made it worthwhile, the minimal deposits. Currently, a couple with two kids, both adults working full time for minimum wage, would be eligible for a Welcome Home loan for a house costing $205,000, with a deposit of $750. From October 1st, the deposit required will go up to $20,500. Continue reading

Affordable Housing is Common Sense

Many people in their twenties and thirties must face the fact that unless there are drastic changes in government policies, they will never be able to afford to buy their own home. Sadly, the chickens have come home to roost, in more ways than one. Continue reading

Alliance mortgage plan turns financial crisis into asset

Alliance Party finance spokesperson Professor Jim Flynn says the government has to think outside the square to prevent ordinary New Zealanders losing their houses during the economic crisis because they can’t afford their mortgage payments.

In the wake of the news that in August this year at least 50 families were forced into mortgagee sales of the family home, Professor Flynn says there is a simple solution.

“Rather than have people face mortgage sales, the government should buy the houses off the banks for their rateable value. The bank would be relieved of a ‘toxic’ asset and the government would get something in return for helping the bank.”

The home could then be rented back to the occupiers at perhaps 20% of their income. This would mean people could afford stay in the family home. They are spared the upheaval of trying to find alternative accommodation, which could mean overcrowding, children having to move schools and a loss of social support systems. Continue reading

Alliance denounces rent spike in Christchurch council housing

The Alliance Party is supporting the Council of Social Services in its High Court legal challenge to stop massive rent increases for council housing in Christchurch.
Alliance Party Housing Spokesperson and Wigram candidate Tom Dowie says the Minister of Local Government should be stepping in and demanding that the Christchurch City Council hold off with the rent rises until the High Court has made a determination.
“This 24% rent hike is outrageous and will result in hardship at a time of rising living costs.” Continue reading