1. Question No. 1—Prime MinisterHon JUDITH COLLINS (Leader of the Opposition) to the Prime MinisterORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Prime Minister1. Hon JUDITH COLLINS (Leader of the Opposition) to the Prime Minister: Does she consider a $195000 increase in the price of the median house since October 2017 a sign of a Government that is absolutely committed to resolving the housing crisis and taking a multitude of steps and levers to make that happen" as she stated in her speech in the 2017 Address in Reply debate?Rt Hon JACINDA ARDERN (Prime Minister): Like many New Zealanders I am concerned by increasing house prices which is why we as a Government are absolutely committed to making progress on housing. I take as a sign of that commitment the fact that since 2017 there has been record new home construction with 37725 new homes over the last year. First-home buyers are 25 percent of purchasers in the third quarter of 2020 the highest levels since CoreLogic's series began in 2005. Since 2017 we stopped National's sell-off of State homes and we added 6000 new public homes in the last three years. We developed the National Policy Statement on Urban Development to substantially increase development capacity—as much as 40 percent in some local authorities. We established a progressive homeownership scheme increased the First Home Grant made the First Home Loan scheme more accessible and of course started KiwiBuild. We passed the healthy homes standards and introduced fairer tenancy laws. But we also acknowledge there is more to do.Hon Judith Collins: Is she aware that her three-year increase of $195000 is a greater increase than was experienced over the entire nine years of the last National Government? Rt Hon JACINDA ARDERN: I reflect the fact that in the last month—in the last month alone—we've seen significant increases. Before September we were looking at an annualised increase according to CoreLogic of roughly 4 percent; under the last National Government it was 9 percent. But what you will not hear from this Government is any acceptance that escalating house prices at that rate are acceptable and that is the most significant difference between a Labour Government and a National-led Government. Hon Judith Collins: Does she consider her policy of extending the brightline test from two years to five years has been successful in reining in house prices?Rt Hon JACINDA ARDERN: Well firstly I'd say that I can only assume that the motivation of the National Government at the time in introducing it was for that purpose. We do not as yet have the advice from officials to tell us whether or not it has contributed to what we were seeing around speculators buying and flicking houses but we have asked for that advice and I'm sure we'll be sharing it in good time.Hon Judith Collins: Does she now three years after extending the brightline test from three years to five years think that the answer to house price growth is a further extension of the brightline test?Rt Hon JACINDA ARDERN: I acknowledge that actually the extension of the brightline test—I can't ascertain from the member's question whether she supports the existence of it or not given it was her Government that introduced it—was never the only thing that we did. We banned foreign buyers in our residential housing market. We closed tax loopholes. We for instance have recognised in an economic downturn—unlike the last National Government during the global financial crisis where we saw housing construction halve we have created an underwrite scheme to try to keep that development going. We have never ever focused on one single response because if there was one single answer someone would have resolved this underlying issue by now. We however at least in the last term started to make headway.Hon Judith Collins: Does she believe it would be fair to say that increasing the brightline test a second time is doing the same thing expecting somehow a different result in house prices?Rt Hon JACINDA ARDERN: The very reason we have asked for analysis in this area is because we are exploring every opportunity to try to stabilise the housing market in this current environment. Again I notice the member is raising that one example because to be honest it was about the only thing that the National Government did in office to make the situation better. They did plenty of things to make it worse.Hon Judith Collins: Does she agree with the Governor of the Reserve Bank that "High house prices … largely reflect structural and regulatory issues … In particular land use restrictions such as urban planning rules"?Rt Hon JACINDA ARDERN: Well that is the reason that we of course developed and introduced the National Policy Statement on Urban Development which is focused on making sure that local government are obliged to release land for population growth. It also means that we will see greater intensification along transport routes. We want decent planning for new housing. We also don't want to see those escalating land prices based on what we have had around urban metropolitan limits. Hon Judith Collins: With all the things that the Prime Minister's listed today as the actions that she's taken in relation to housing and house prices why is it that house prices have risen so much more under her watch than under the nine years of a National Government?Rt Hon JACINDA ARDERN: Firstly I reject the premise of that question. Secondly again it was only several months ago we were talking about a potential crash in the housing market. We are now looking globally at a significant issue in house prices. I refer the member to two articles one listing that "Low interest rates and changing preferences explain housing's strength during the pandemic"—that's an article on the international situation around housing—and also "Monetary policy fiscal measures and buyer preferences explain the unlikely boom": "Why despite the coronavirus pandemic house prices continue to rise". This is an Economist article about the global situation not just New Zealand.Hon Judith Collins: Point of order. I seek leave to table a report from the Real Estate Institute of New Zealand showing the house price increase under the current Government as compared to the previous one.SPEAKER: Order! Is there any objection to that document being tabled? There appears to be none.Document by leave laid on the Table of the House."