PREAMBLE:

    • Net zero immigration, for a period, until housing demand is eased. Student visas would be excluded from this immigration total.
    • We need to free up residential land that is being used as a land bank by developers. We incentivise  that by implementing a land tax on dormant residential land which would increase on an annual basis.
    • Implementing practical solutions around housing itself, such as pre-approved and pre consented housing designs. Any designer would be able to have their designs approved nationally, and put on a website of approved designs from which people can choose what house design they would like on their section. Councils would only then be required to sign off on the likes of drainage and siting, which would significantly reduce consent time frames and costs.
    • Only New Zealand citizens and residents should be able to own land in New Zealand.

The Conservative Party recognises that housing availability, affordability and quality all need to be addressed on multiple fronts:

SHORT POLICY SUMMARY

Supply Management

Demand Management

Cost Factors

Skill Shortfalls

Building Regulations

POLICIES

Supply management:

  • Addressing the shortfall in the supply of housing caused by artificial urban limits and zoning, ensuring that sensible restrictions are put in place, that do not increase the problem;
  • Addressing the issues caused by land shortage by encouraging the releasing of more sections to the market by private developers and by central and local governments;
  • Ensuring a healthy balance between increased urban expansion and medium density infill housing and apartments;
  • Encouraging greater regional growth, ensuring a greater dispersion of population across the whole country not just the major centers, resulting from thriving regional economies; moving government departments away from the main centres to encourage this regional growth.
  • Introducing a Betterment Tax by Councils on land that is rezoned to residential to increase land availability, eg agricultural land, commercial land, to finance the cost of upgrading infrastructure to service the new development;
  • Establishing Council Controlled Organisations to develop Council owned land with affordable housing, not as a profit making exercise but as a genuine attempt to curb over stimulation of the market including the use of leasehold land where appropriate;
  • Introducing a land tax increasing annually on  urban land purchased for development based on its purchase price, commencing in the second year after purchase, or on any portion of the land on which building has not been commenced.

Demand Management:

Find innovative ways to help New Zealand families into their own homes. We would look to do this through the use of:

  1. Tax incentives;
  2. Changes to Kiwisaver;
  3. Reassessment of the loan to value ratios (in markets that are not over-stimulated).
  4. Allowing people who are not tax residents, and those not ordinarily residing in New Zealand to purchase a single residential New Zealand property, providing it is a new build, as long as they have an IRD number, pay tax on any income, and are subject to an annual land tax until the time they have become tax residents
  5. Removing the ability of overseas investors, whether individuals, trusts or businesses, to purchase existing New Zealand residential property to provide for increased ownership by New Zealand citizens.
  6. Introducing stamp duty on the purchase price of residential property by NZ investors with more than one property, increasing for every subsequent property purchased.
  7. Encouraging personal home ownership by making homes built through development by CCOs available for purchase on a rent to buy basis, with a reducing penalty for on-selling within a set period after purchase;
  8. Encouraging personal home ownership by making homes currently owned by the State available for purchase on a rent to buy basis. Those tenants not availing themselves of this opportunity can have no sense of permanency, and Housing NZ should use their housing inventory to the maximum effect.
  9. Ensuring immigration that serves and stimulates our economy is maintained at a level that we can adequately provide for in the area of housing.

Cost Factors:

  • Removing unnecessary regulation and compliance requirements from the residential housing sector. These incur costs on developers and inevitably flow onto the end consumer. They cause delay, additional costs for both developer and consumer, and in some cases threaten the financial viability of projects;
  • Encouraging greater efficiency in the market, through modern and innovative building practices (eg pre fabrication) This will accelerate the rate of increase in the housing supply, bring down costs and take the heat out of a significantly overstimulated market;

Addressing skills shortfalls:

  • We would introduce a new apprenticeship regime in the building industry whereby the unskilled can receive quality training in specialised areas of the building industry, such as foundations, framing, roofing, to enable faster qualification and see more young New Zealanders in gainful employ meeting this ongoing demand of new housing;
  • Implement trade streaming at appropriate school age to identify skills and identify tradespeople early, to expedite the entry into trade industry for young people;

Building regulation:

  • We would set up a system where draughtsmen and architects can have pre-consented plans available to download.  Tradesmen could have these priced in their area so that people can quickly choose and start a build on their land. Consenting and draughting costs would be greatly reduced.
  • Allow certified inspectors to sign off parts of a building so as to allow more pre-fabrication and streamline construction. With all houses requiring a 10 year build guarantee, it would mean insurers would monitor inspectors.
  • We would timeframe a move to better quality and insulated houses, more in line with European standards, therefore reducing energy demand in heating with financial incentives to see this take place. This would have flow on effects of improved health and less home deterioration.
  • We would ensure that future housing owned by the State is built in such a way that maintenance is reduced (precast or poured in situ housing).
  • Housing New Zealand tenants would be subject to regular spot checks, and those failing to show care would be warned verbally and in writing.  Continued failure to comply would result in being required to leave the home, and being banned from further State Housing for a specific period, depending on the level of the misdemeanour.
  • All new houses built would require an independant 10 year build guarantee. Insurers would then monitor LBP’s to make sure they met quality standards.