Twyford Phil: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Questions for Oral Answer — Questions to Ministers[Sitting date: 08 May 2014. Volume:698;Page:17687. Text is incorporated into the Bound Volume.]5.PHIL TWYFORD (Labour—TeAtatū) to theMinister of Housing: Does he stand by his statement “The Government is committed to supporting as many Kiwi families as possible to achieve the goal of owning their own home”; if so is homeownership increasing or decreasing according to the latest Census?Hon Dr NICK SMITH (Minister of Housing): I am totally committed to getting as many Kiwi families as possible into homeownership. That is why the Government has an active work programme on land supply fast tracking consenting development contributions materials projects like Weymouth and Hobsonville Welcome Home Loans KiwiSaver first-home deposit subsidies and on our economic policies that are keeping interest rates lower for longer. The latest census data shows homeownership rates of 65 percent and a 2 percent decline over the preceding 7 years covering both Labour and National periods in office. These rates declined every year under the previous Government when house prices doubled and interest rates soared. I note that independent measures of housing affordability show they were at their worst in 2008 and have improved by 25 percent in the term of this Government.Phil Twyford: To what extent will the collapse in homeownership on his watch be worsened by the collapse in affordability—the biggest monthly drop in affordability in 12 years—and record house prices in Auckland up $86000 in Auckland in the past year and why does he think that parroting historical data from years ago helps Kiwi families now to get into their own homes?Hon Dr NICK SMITH: I am very keen to share with the House the independent house affordability data that is collected both byDemographia and also by Roost. Both of those data show that housing affordability has improved. Let me give you the national results. TheRoost Home Loan Affordability Report which measures average house prices average incomes and interest rates showed that the average in New Zealand was 83.4 percent—that is a person on the average income with an 80 percent mortgage would need to spend 83.4 percent of that income on servicing a mortgage. That figure is currently at 57.6 percent. That is an improvement of 25 percent since that member’s party was in Government.Phil Twyford: Can he confirm that theRoost Home Loan Affordability Report indicated that the March figures were the biggest monthly drop in home affordability in 12 years?Hon Dr NICK SMITH: I am happy to share the housing affordability data studied by the Roost survey. Let me give the numbers. Nationally it peaked at 83.4 percent in 2008. It was 57.6 percent in March 2013 and 58.7 percent in February 2014. If we look at Auckland the Auckland data peaked at its worst in the previous Government’s last year in office when 101 percent of an averageAucklander’s income would be required to service an 80 percent mortgage. The current figure is 77.6 percent an improvement in Auckland of about 23 percent under this Government.Phil Twyford: I raise a point of order Mr Speaker. I deliberately asked a very narrow and specific question—Mr SPEAKER: Order! I will invite the member to ask that question again.Phil Twyford: Can the Minister confirm that theRoost Home Loan Affordability Reportfor March indicated that the month of March saw the biggest drop in home affordability in 12 years?Hon Dr NICK SMITH: The figures that I have been provided with by officials are that the Roost survey March 2014 data showed that the average New Zealand family would need to spend 57.6 percent of their income. What it also showed was that figure was 83.4 percent in 2008.Phil Twyford: I raise a point of order Mr Speaker. I repeated at your direction a very specific question.Mr SPEAKER: And I have sympathy for the member. The member has put the question twice now. The answer has been given and we can certainly say it addressed it. Whether it was to the member’s satisfaction or the House’s satisfaction is for the member and the House to decide. The member has further supplementaries.Grant Robertson: Can we have a vote?Mr SPEAKER: No you cannot have a vote Mr Robertson.Phil Twyford: How many of the 18000 new homes he promised yesterday will be affordable for average Kiwi families when Auckland real estate agents are now marketing $800000 homes as affordable or is $800000 affordable under his failed housing policies when houses in Auckland have risen by $235 a day over the past year on his watch?Hon Dr NICK SMITH: I would note that the largest increase in Auckland house prices occurred between 2000 and 2008—Phil Twyford: That’s history.Hon Dr NICK SMITH: —when they more than doubled. The member can say that it is history but actually it is the changes that occurred over that decade that have really made the marked decline in housing ownership and housing affordability. In terms of the 18000 houses that we are freeing up the regulations to build the reality is that unless you are going to install a Stalinist economy where the Government and councils decide the price people can sell their home for nobody in this Parliament can say exactly what those houses will sell for. What all the economic data shows though including the latest report from the New Zealand Institute of Economic Research is that the best way to make houses more affordable is to get rid of the stupid metropolitan urban limit that was strongly endorsed by members opposite.Phil Twyford: Were the 18000 houses that he promised yesterday included in the 39000 houses he has already promised for Auckland—are they new houses or is he double-counting again—and why will these new special housing areas be more successful than the last ones when only 13 resource consents were issued in the first 6 months of his special housing areas being in operation?Hon Dr NICK SMITH: There is no question that the level of house building in Auckland is growing at an all-time rate. It has increased by 40 percent. The number of building consents—Phil Twyford: That’s not true. That’s simply not true.Hon Dr NICK SMITH: Well the number of building consents this year is hugely increased on last year and is continuing to grow. The 18000 additional homes announced in the special housing areas is part of the delivery of those 39000 homes in the accord and just show how successfully this Government is working with the Auckland Council to address the affordability issues that developed in Auckland when the previous Labour Government allowed house prices to double.Phil Twyford: Is he proud of the fact that house prices are skyrocketing to the highest levels in history that families are being shut out of homeownership in record numbers that interest rates are rising that speculators are having a field day and that absentee foreign ownership is rampant and will he now concede that he should have just adopted Labour’s popularKiwiBuild policy?Hon Dr NICK SMITH: I am more than happy to comment onKiwiBuild. It is about as stupid as saying that the way to get food prices down is to have the Government own all the supermarkets or that the way to get car prices down is to have the Government own all the car companies. I would note that since the Opposition announced itsKiwiBuild policy the private sector is actually building 10000 more houses per year by increasing confidence and getting the regulatory environment correct.