Twyford creates a new housing crisis

Credit: Stuff

Phil Twyford has managed to create a new housing crisis.

With his incessant promotion of Kiwibuild there are now more people on the waiting list than houses that will or can actually be be delivered: Quote:

More than 2000 people have begun the KiwiBuild pre-qualification process for the first batch of 18 KiwiBuild homes.

They could have a long wait, with just 30 homes expected to be finished by the end of the year, and 1000 by next July.

KiwiBuild?unit head Stephen Barclay revealed that at least 2230 people had started pre-qualification?in a speech to the Affordable Housing Development Summit late last week.

It is not yet clear how many people have actually completed the pre-qualification process, which involves getting lending approval from a bank or other lender.

Over 41,000 people have registered their interest in a KiwiBuild home.?End quote.

So, there is massive expectation, and this is where the crisis will hit, Twyford has created massive interest but delivery will never meet expectations.Quote:

Barclay also revealed that just 13 of the 97 proposals to build KiwiBuild homes the unit received had been rejected, with about half of the total moving forward and the rest still in discussion.

Final deals have been signed on 14 separate projects?providing about 800 homes over the next two years.

KiwiBuild is the Government’s plan to build 100,000 affordable homes over ten years, with half in Auckland.?End quote.

800 homes isn’t anywhere near what is required over the next two years to even keep pace with promises.Quote:

“The bottom line is: we’re very proud to say that the first KiwiBuild home buyers will wake up on Christmas morning 2018 in a home of their own.”

“Just in case there are any sceptics still left out there, let me be absolutely clear: KiwiBuild is here, the deals are being done, and these homes are being built,” Barclay said.

The “sceptics”?span a wide range of people. National has?naturally questioned whether the Government will be able to meet its targets without simply taking capacity out of the private sector. Treasury has?also downgraded its?estimate of the additional investment that KiwiBuild will bring.?End quote.

This is the problem. There is no new capacity being developed. All the government is doing is stealing capacity from the private sector.?Quote:

National has particularly criticised the notion of KiwiBuild buying homes “off the plan” from private developers for its first years of operation.

From a cast-iron election pledge to build 100,000 additional houses itself, the Government’s KiwiBuild plan has contorted into nothing more than going to private developers with a subsidy and a plea for help,” National housing spokeswoman Judith Collins said in May.

Barclay said the “off-the-plan” homes were just one aspect of the plan to “get the ball rolling”.

Next year would be focused on “achieving scale” with large scale projects and relationships with private developers. The Government has set a much more ambitious goal for mid-2020, aiming to get another 5000 homes finished on top of the 1000 delivered in the first year. End quote.

He’s just contradicted himself. He is talking about building 5000 homes but several paragraphs earlier has said he’s signed up 800 in the next two years. These muppets can’t reconcile their promises, no wonder they hired Rachel Smalley to help with the spin.