New Economics Party

Labour’s housing plan derided as a ‘patch-on solution’

By  Alan Tristram

Labour’s new plan for ‘affordable’ housing has come in for strong criticism from an unexpected quarter — the left-of-centre New Economics Party.

Deirdre Kent,of Ōtaki, a party organiser,  says that although Labour has the right goal ‘their proposed method of doing it doesn’t get to the bottom of the problem and is an artificial patch-on solution.’

She says: “While land remains as an asset class to speculate on, property prices will keep rising. It is private landowners and banks who reap the unearned gains from rising land prices, and this widens the gap between rich and poor.

 Land comprises 60% of Auckland values

“Land now comprises an average of 60% of the value of a property in Auckland,” she says. These 100,000 affordable homes will be bought cheaply and flicked over for a profit, so at least Labour should put a caveat on each title to prevent that.”

Deirdre Kent adds: “Only by addressing the rising land price problem at its roots can we wrench power from the overseas owned banks, which took $3.5 billion in profits last year out of the country.

“Other solutions are artificial and only work for a while.”

“Until we wake up and see that the property bubble in Auckland concentrates wealth with landowners and banks, we will not make much progress in bridging the wealth gap.

“Land should be treated as quite a different asset class to buildings. We need a method to take land out of the market place.”

She says Labour’s weak Capital Gains Tax won’t touch the affordable housing problem, because it leaves the family home untouched and is set far too low anyway.

 

 

New Economics Party

http://neweconomics.net.nz