Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 03 May 2016. Volume:713;Page:10659. Text is incorporated into the Bound Volume.]5.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that we are “on the cusp of something special” given the median Auckland house price has risen by $100000 since January?Rt Hon JOHN KEY (Prime Minister): Yes as it related to the many opportunities that New Zealand has under a National-led Government which I would be more than happy to go through. They include falling unemployment in New Zealand rising growth in New Zealand greater opportunities for New Zealand a wealth effect that is going across the country rising business confidence and consumer confidence but also based on Real Estate Institute of New Zealand data the median Auckland house price has increased by that amount since March 2015. That is an annual increase of just under 14 percent which includes some months when the median price fell.Andrew Little: Given that only one in five Aucklanders under 40 now owns their own home does he still think there is no crisis in homeownership in New Zealand?Rt Hon JOHN KEY: There is no question that generally the Auckland housing market has been rising a little faster than the Government would want and that is why the Government has taken a wide range of steps which include helping 12000 people through KiwiSaver HomeStart. That is why we have seen the highest level of building consents in more than 11 years at 9500. That is why we have had over 120 special housing areas in Auckland. That is why the Government is trying to reform the Resource Management Act. That is why the Government has tightened up the tax rules around the brightline test and why the Government is releasing land. These are all things that this Government has done whereas the previous Government saw house prices double under its watch and—Mr SPEAKER: Order! The answer is very long.Andrew Little: Is he so out of touch that he thinks most Kiwi families can save the $160000 needed just for the deposit on a house in Auckland?Rt Hon JOHN KEY: I think it is important to understand that a lot of first-home buyers will not go into a medium-priced house in Auckland. Many young couples will start in a one- or two-bedroom apartment in Auckland. That is consistent with large cities all over the world. There are still many homes in Auckland that are under $500000. The Government does support them through KiwiSaver HomeStart and through good economic management which has seen the lowest interest rates in New Zealand on display in the last 70 years.Andrew Little: Does his latest half-baked policy of a land tax on only foreign buyers mean that his previous policies which include discount nails brightlines and building houses in cemeteries have all failed?Rt Hon JOHN KEY: The Government has not made a decision about applying a land tax to foreigners but what we have said is that if people were concerned about the level of overseas ownership of New Zealand houses that would be a far more effective model than the crazy idea Labour has got of banning foreigners because as we know Australia has tried that and it did not work.Andrew Little: Why let foreign speculators buy houses in New Zealand at all?Rt Hon JOHN KEY: I think you would find that the bulk of people who buy houses in New Zealand in my best guess are people who live in New Zealand or have a connection with New Zealand. But we will have much better information on that in the next few weeks.Andrew Little: I raise a point of order Mr Speaker. My question was about—Mr SPEAKER: Order! I am going to invite the member to ask that question again. [Interruption] Order! I do not need help from Dr Lockwood Smith—Dr Nick Smith. I probably do not need help from either of them.Andrew Little: We still enjoy the help of Dr Lockwood Smith even to this day. Why let foreign speculators buy Kiwi homes at all?Rt Hon JOHN KEY: We do not ask people specifically why they buy a property because they buy them for a wide range of reasons. They may buy them to rent them because one day they want to move into them or it may be that they want to holiday in them. As I said we will have a lot better information on this in the weeks months and years to come and we can make a call on whether we think this is a significant issue or not.Andrew Little: Why will he not just stop faffing around and do what Labour would do: restore the Kiwi Dream of homeownership by banning offshore speculators and by building thousands of affordable homes for Kiwi families?Rt Hon JOHN KEY: I think the member needs to wake up and have a look at the facts: house prices doubled under the previous Labour Government interest rates were 11 or 12 percent and inflation was out of control. That did not help the property market one little bit.