8. Housing—HomeStart First Home-owners and Consent NumbersPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionHousing—HomeStart First Home-owners and Consent Numbers8. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: Does he stand by his statement Whenever people make that first decision to get into a first home it is always going to be a stretch and difficult. I think there is an element that people need to be realistic and that is that your first home is not going to be one in the leafy suburbs of Remuera close to the central city"?Hon Dr NICK SMITH (Minister for Building and Construction): Yes and I note that through the HomeStart grants at the time of that quote 2 years ago we have helped over 27000 first-home buyers into their first home with grants topping $120 million the most generous help a Government has given to first-home owners in generations.Phil Twyford: Did he say that of the 90000 first-home buyers that he promised a first home under his HomeStart package only 26000 are actually living in their first homes 2 years later and was it deliberate that that package was announced on 1 April?Hon Dr NICK SMITH: The HomeStart scheme which the Government started on 1 April 2015 is growing in success—Phil Twyford: You promised 90000 Nick.Hon Dr NICK SMITH: Ninety thousand over 5 years Phil and 27000 people have been provided with a grant. I draw the member's attention to the fact that through those changes $500 million—a doubling in the amount of money—has been accessed from KiwiSaver accounts to help people into their first home. I thought the member would have welcomed that.Phil Twyford: Does he still agree with the former Prime Minister John Key who advised young first-home buyers that there were "quite a few" affordable homes in Auckland on TradeMe or does he now agree with the current Prime Minister that first-home buyers should just be patient to get a home of their own?Hon Dr NICK SMITH: I would draw to the member's attention that house prices in Auckland where the market is most difficult for first-home buyers have actually dropped by 8 percent in the last 6 months and that supply continues to grow. We have got the highest level of building consents in Auckland for more than 10 years at over 10000 per year. There is a construction boom going on but each individual homebuyer will make their own choice regarding their circumstances.Phil Twyford: Has he seen reports that his claimed Auckland house-building boom resulted in about 8000 houses being built last year when the city needs 13000 a year just to keep up with population adding to the 40000 home deficit built under his watch; if so does he still think that his time as Minister has been successful?Hon Dr NICK SMITH: When I became Minister we were building 4000 houses a year in Auckland; we are now building 10000 a year. That is phenomenal growth and there is actually no 4-year period in which there has been stronger and more consistent growth in building in Auckland than over the last 4 years.David Seymour: Can the Minister also confirm that when he became Minister Auckland and indeed New Zealand were at a 40-year low?Hon Dr NICK SMITH: No the actual lowest number of building consents issued in any month in the last 25 years was in November 2008 after 9 years of a Labour Government in which house prices had doubled and the economy had collapsed. That just reinforces the challenge that I and colleagues on this side of the House had to pick up on from 2009.Phil Twyford: How much longer should first-home buyers be patient given that under National the average Auckland house price has doubled and homeownership for people under 40 has dropped to 25 percent?Hon Dr NICK SMITH: Firstly I would remind the member that in Labour's 9 years house prices more than doubled nationally significantly more than they have under our administration. Secondly our measures are showing real progress. If you take the Massey Affordability Index it actually shows improvements in housing affordability over the last 12 months. I would also draw the member's attention to the Reserve Bank data last week that showed that lending for investors has dropped and lending for first-home buyers and other owner-occupiers has increased substantially over the last 12 months.David Seymour: Can the Minister confirm that on an annual basis when he came into being Minister New Zealand was at a 40-year low in home building consents?Hon Dr NICK SMITH: When I became Minister nationally we were building 13000 homes per year. The latest data is that we are building 30000 houses per year and I would challenge that member or any other in the House to show a period of 4 years when there has been as strong a growth in building construction."