Muller Todd: Oral Questions — Questions to MinistersText is subject to correctionMuller Todd: Oral Questions — Questions to Ministers[Sitting date: 29 April 2015. Volume:704;Page:2977. Text is subject to correction.]5.TODD MULLER (National—Bay of Plenty)to the Minister for Building and Housing: How many applications have been made for KiwiSaver HomeStart since the scheme took effect on 1 April 2015?Hon Dr NICK SMITH (Minister for Building and Housing):Housing New Zealand received the 2000th application this morning which is a stunning result given that the scheme has been in place only since 1 April. That is treble the number that was received in April last year under the old schemes and it shows how the Government is helping hundreds of families every week to get into their first home. The scheme has actually proved so popular that Housing New Zealand has had to expand the number of staff that are processing the applications.Todd Muller: What response has there been to the HomeStart public meetings from prospective homeowners building companies and banks?Hon Dr NICK SMITH: We have had an average of over a hundred people at each of the four meetings that we have had in west Auckland in Christchurch in my own electorate of Nelson and last night on the West Coast where there was a very wide level of participation particularly from young people who are looking to purchase their own home. They are quite excited by the potential to put the HomeStart grant and the changes that have been made to KiwiSaver home withdrawal as well as the Welcome Home Loans together for them to be able to realise the dream of owning their own home. I am also quite encouraged by the very high level of interest from building companies that see the opportunity for increased demand for houses in a more affordable range and I am confident that it is going to result in more homes that are suitable for those people utilising the HomeStart scheme.Todd Muller: What changes have been made to the support for first-home buyers that will help direct the assistance from the Government towards building new homes?Hon Dr NICK SMITH: A common complaint has been about the old scheme being very difficult to use for purchasing a new home. That was firstly because you could not previously use your KiwiSaver withdrawal for a deposit on a new home; that did not work. Secondly—Phil Twyford: What did Treasury say about this?Hon Dr NICK SMITH: Treasury said it was very supportive of the extra support for growing new homes. I am very disappointed that one of the common questions I have had at the meetings has been about how soon people have to get in and get their grant given that Labour is promising to abolish the scheme. I have had to advise people that yes they can be guaranteed that this Government is committed to the scheme for the next 3 years but they will have to vote for a National Government if they want HomeStart to continue beyond 2017.Phil Twyford: Has he seen the latest AMP360 Home Loan Affordability Report showing that lower quartile house prices in Auckland rose to $587000 from February—that is up $32600 in 1 month completely wiping out his HomeStart programme in a single month showing that his tinkering is only making the housing crisis worse?Hon Dr NICK SMITH: I do find the accusation of tinkering interesting from that member because when I intervened in the Auckland Council with the special housing area this was the member who put hoardings all through Auckland telling me to butt out and that I was doing too much. So it is a bit rich for him now to be telling me I am not doing enough. Actually in Auckland we have doubled the rate of house build. We were doing 4000 per year; we are now building 8000 per year. I accept that the challenge has got more difficult because we do not have 40000 people a year leaving for Australia. They want to stay here. We are going to need to build more houses and we are up to that challenge.