Nats’ housing policy shown up by international central bank

National’s housing policy has been shown up by the Bank for International Settlements which says housing taxes are the only way to slow house price rises and LVRs have less impact, say Labour’s Finance spokesperson David Parker and Housing spokesperson Phil Twyford.

“LVRs won’t have a big impact on skyrocketing house prices because property speculators step into the gap left by first home buyers, says Phil Twyford. “We’ve seen that start to happen already.

“Now the Bank for International Settlements has shown what Kiwis know to be the case. LVRs won’t slow house price increases. Only housing taxes, such as a capital gains tax can do that.

“Recent polls show that 52 per cent of Kiwis believe a CGT will slow house price rises compared to just 37 per cent that think LVRs will.

“National needs to stop the damage being caused by LVRs by, at the very least, re-negotiating an exemption for first home buyers. That’s what Labour will do, says Phil Twyford.

“The BIS research is the most comprehensive study yet done and proves that a housing tax such as a CGT is the best tool to tackle house price inflation, says David Parker.

“But National has ruled out a CGT. That is condemning Kiwis to becoming a generation of renters as house prices continue to increase. National only supports LVRs because they favour their backers, while a CGT hits them in the back pocket.

“Labour is the party of first home buyers. The home ownership dream can be kept alive by clamping down on speculators through a capital gains tax on investment properties and through Labour’s KiwiBuild programme to build 10,000 affordable starter homes a year, says David Parker.
25 November 2013 MEDIA STATEMENT

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Author: David Parker MP

I am a List MP for the New Zealand Labour Party, and Spokesperson for Trade & Export Growth and Treaty of Waitangi Negotiations and the Shadow Attorney General

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