22 Jul 2013

Only capital gains tax and more houses will solve crisis - Labour

9:07 am on 22 July 2013

Labour says a Government proposal to change KiwiSaver thresholds to help first-time house buyers is just a sweetener, and will not address the root cause of rising house prices.

Housing spokesperson Phil Twyford said only a capital-gains tax and building more houses will stop house prices rising so quickly.

Housing Minister Nick Smith is considering changing Kiwisaver thresholds to help first-home buyers, who may be caught out if the Reserve Bank imposes rules requiring larger deposits for home loans.

The threshold changes would provide greater scope for buyers to unlock their savings for a deposit on a first home.

But Mr Twyford said first-home buyers would still be caught short by tens of thousands of dollars.