John Key announces $1 billion housing loan fund - Yahoo New Zealand
Mute
Current Time 0:00
/
Duration Time 2:11
Loaded: 0%
Progress: 0%
Stream TypeLIVE
Remaining Time -2:11
 
Playback Rate
1
    Chapters
    • Chapters
    Subtitles
    • subtitles off
    Captions
    • captions settings
    • captions off

    John Key announces $1 billion housing loan fund

    Mute
    Current Time 0:29
    /
    Duration Time 0:29
    Loaded: 0%
    Progress: 0%
    Stream TypeLIVE
    Remaining Time -0:00
     
    Playback Rate
    1
      Chapters
      • Chapters
      Subtitles
      • subtitles off
      Captions
      • captions settings
      • captions off

      The government is tackling the housing shortage, its most pressing problem, with a $1 billion fund that will be used to build roads, water supplies and other infrastructure in areas where more homes are most needed.

      And it's considering establishing independent Urban Development Authorities for specific areas, with powers to override barriers to large-scale development.

      Prime Minister John Key announced the initiatives at the National Party's annual conference in Christchurch on Sunday, saying increased supply was the answer to the shortage.

      John Key was addressing the National Party conference. Photo: Getty Images

      The fund will be open to councils in areas with high population growth - Auckland, Christchurch, Queenstown, Tauranga and Hamilton.

      The government will borrow the $1b, and Mr Key says it isn't going to be a handout to councils.

      "The fund will directly finance or own the infrastructure until councils receive revenue from the new houses, when people move in and start paying rates," he said.

      "Councils will then have to repay the capital or buy back the assets - so this is not a grant or an ongoing subsidy."

      To access the fund councils will have to outline how many new houses will be built, where they will be built and when they will be available.

      "Ideally, they will have agreements with developers," Mr Key said.

      To access the new fund, councils will have to outline how many homes will be built, and where. Photo: SNPA

      "The fund will be tightly targeted at core infrastructure supporting additional new housing - it will not be available to replace infrastructure for existing housing or for infrastructure built by developers within subdivisions."

      Mr Key says independent Urban Development Authorities, if they are established, would have powers to override barriers to large-scale development, and could include responsibility for planning and consenting.

      "They have been used widely overseas, including in Australia, to help unblock development pipelines in high-growth areas," he said.

      JOIN the debate on our Facebook page.

      More News From Around NZ

      Feedback Form