Government gives up on its Kiwibuild promise

Radio NZ reports:

Housing Minister Megan Woods has unveiled the hotly-anticipated reset of the government’s failed flagship policy.
The reset includes setting aside $400 million to help low-and middle-income New Zealanders buy homes through schemes such as shared equity and rent-to-buy, and reducing the deposit needed for a Government-backed mortgage to 5 percent.
The announcement comes seven months after former Housing Minister Phil Twyford said the programme would be reset.
Ms Woods acknowledged the 100,000 target was “overly ambitious” – to date, only 258 homes have been built.
“[It] led to contracts being signed in places where there was little first home buyer demand.
“Instead of the target, we will focus on building as many homes as we can, as fast as we can in the right places.

So basically there will be no target at all. 100,000 may end up being 500.

Examples of KiwiBuild houses built in the wrong places include developments in Te Kauwhata, Canterbury, and Wanaka.
Homes in areas that haven’t sold will now be released to the open market.

As I said this morning they failed on both supply and demand.

This isn’t so much a reset as a total retreat.

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