The Government has been shouting the success of its public house build programme from the rooftops, but what it doesn't broadcast so loudly is how many it's sold or bowled. With homeownership rates fallingbetween 1991 and 2006 the number of Aucklanders owning their homes dropped from 72 to 62 per centdemand for social housing is only going to increase. "In the winter, [my grandchildren] locate to my house," Brown told Newshub. Similar problems struck workers dwellings in other centres. Let the Kiw battler build their home as they want. let me see if I can get this completely straight. However, the lull in activity had increased the gap between supply and demand, made wider by the governments decision to allocate 50 per cent of all state houses to returned servicemen. As a staff memorandum explaining the policy stated: In the selection of tenants to occupy the houses set aside for Maoris the Allocation Committeewill, in addition to the over-riding consideration of housing hardship suffered by the applicants, have regard to the ability of the families to fit into the industrial and economic life of the community and to adjust themselves generally to the Pakeha way of living. Labour leader Andrew Little says the Government's plan for social housing is about looking after National's "private developer mates" rather than fixing the country's housing problem. The timber-clad character of most state housing is a pointer to the fact that, in the case of their tenants, nothing is cast in stone. And this was the way it should be, the paper proclaimed. Wanting to support the newly rising national birth rate (the Depression had been no time to have children) Labour discriminated in favour of married couples with one or more children. Growing demand for housing after World War I led the Railways Department to set up a factory at Frankton, Hamilton, building pre-cut houses from local timber. No Addition to Taxation This Year. This would have brought the total state-housing stock to just over 50,000, down from 70,000 in 1993. Children of tenants could not inherit state houses, explained Housing New Zealand, the countrys largest social-housing provider. He spruced them up a bit and let them out for $150 a week eachan annual return of 18 per cent. The Government also wanted to accelerate plans to ensure Housing NZ had the right location and right-sized houses to suit those who wanted them. The opening of that houseat which Labour Prime Minister Michael Joseph Savage carried furniture through an excited throng and over the thresholdis etched on New Zealands collective memory and remains the most potent popular image of state housing. A survey carried out in 1992 by Porirua City Council of 45 state-house households found that 39 of them would be living in poverty once the reforms were fully realised. With victory eventually in sight, building resumed in 1944. In an attempt to address the critical housing shortage, one of the new government's first moves was to establish a Department of Housing Construction, headed by John A. Lee. During the early 1940s, construction of private housing was slow, falling below the numbers needed to address the housing shortfall. Waldegrave thinks a fairer system would have been to increase state assistance to private renters to bring them into line with state-house renters. The statement said the Labour-led Government had cancelled the sell-off of state houses, fulfilling another of its first 100 day promises. That included when a property was too old and expensive to maintain, no longer met tenants needs, or was not in the right place to meet demand, she said. Now it seems the average is 2,000 sgft, why is that? Too often this group finds itself having to accept substandard accommodation in undesirable areas, moving from one dive to the next in much the same way as their inner-city forebears did in the 19th century. Quick links Go to main content Go to search form. The historic . Views on the matter tend to follow political lines, with those to the left arguing that sales should be restricted to maintain a decent pool of affordable rental housing for the poor, and those to the right believing that tenants who can afford to own their own home should be encouraged to do so. For Church the survey highlighted the fact that poverty is not just the absence of money, but also the absence of choices; of any way out. However, towards the bottom of the statement, Twyford said it would still sell houses that were no longer fit for purpose. They were not going to take Olivias eviction lying down. Find out where to look for private housing, or apply for public (social) housing. The government also believed the introduction of market rents would lead to greater competition at the bottom end of the housing market. These opportunists, National believed, were responsible for the blow-out of the state-housing waiting list, which now stood at 45,000. Selling state houses will probably always be a contentious issue. More to the point, what was the government doing building state houses in the first place? After World War II, 10,000 state houses a year were being built by the Government. When adjusted for inflation, nationwide house prices declined 17.9% over the same period. Public housing numbers are rising overall, but the numbers include those from community housing providers - places like the Sallies or the City Mission that also help to house people. The first Labour Government, led by Michael Joseph Savage, wanted to provide homes and stability for people left jobless after the Depression. Chinese and Australian tax residents made up the majority of foreign buyers and sellers. Link here: RNZ 7th June 2018. Thus did Prime Minister Michael Savage put his personal stamp on the days proceedings. Close And there was an assumption that Social Welfare support would be enough. National's plans to decrease its state housing stock signalled a shift from being there to support the "most vulnerable" to handing over the responsibility to private providers, Little said. Like the Liberals, Labour wanted to avoid future slums and raise the standard of New Zealand housing. Governments local and central, cause the problems by regulation and restriction. New Zealand has a parliamentary form of government based on the British model. Subscribe to our free newsletter for news and prizes. Her landlord refused. The Liberals initial solution to the slum problem was to export urban workers to the country, where they would become backblockfarmers or small-town merchants. Here is an article from that time, referencing this: NZ Labour Defends Claim of Foreign Buyers. This was a belated recognition that state housing and social policy were inextricably linked. The principal told a press reporter: Rent increases are the major factor in the decline of the school roll over the past year. In Auckland, community-housing and welfare groups reported that chronic overcrowdingdoubling-and sometimes triplingupin state-housing areas was leading to an increase in poor health, domestic violence and sexual abuse. Shot at the opening of the Labour government's first state house in 1937 at 12 Fife Lane, Miramar, Wellington, this image is one of New Zealand's iconic photographs: Prime Minister Michael Joseph Savage lifts a cumbersome dining table through a cheering throng toward the house's threshold. If you cant contribute but want to help, please always feel free to share our blogs on social media. This reflects different philosophies towards state-housing provision between the parties. Kinga Ora is focused on providing public housing, providing home related financial assistance, initiating or undertaking urban development on its own or on behalf of others, and delivering aspects of the Governments Build Programme. A state house is demolished in Rangiora Ave, Palmerston North, in 2019. Today it acknowledged many state houses were not up to standard and had not been properly maintained. The theory might have been sound, but the practice developed cracks when applied to the reality of individual lives. Originally, these related to the insecurity of an applicants existing tenure, how manydependants they had, their respectability and their ability to pay rent. However, in 1990 she had been made redundant. Housing subsidiescost $1.9 billion a year, he said, with about$1.2b of that goingon the accommodation supplement, andthe other $700m goingto the income-related rent subsidy thatwas being opened up to non-Housing NZ homes. While this is the end of large-scale state housing sell-offs, Housing NZ will be rejuvenating its stock by building and buying newer homes where they are most needed and selling houses that are no longer fit for purpose. In the 1970s pepperpotting fell out of favour as politicians recognised that the total assimilation of Maori into Pakeha society was neither desirable nor practical. Loading Twitter content Acting Director of Civil Defence Emergency Management (CDEM) Roger Ball said other areas could be added to the national emergency declaration. Jacinda Ardern criticised a National plan to sell state homes to tenants despite Labour doing the same thing. The 63,000 state houses managed by Kinga Ora (Housing NZ) provide homes for over 184,000 people, including tenants and their families. One food-bank operator, Maise King, described the situation thus: Were always short Its got much worse since the housing increases. Now national need to stop saying they are good economic managers cause we all know the costs to them having a surplus, too many have to suffer. While most state tenants were grateful for the security of a state house, many also harboured the ambition to own their own home (two-thirds in one unofficial Auckland survey). We're spending $1 million bucks a day on motels - and those are the sort of records you don't want to keep breaking. Despite pleas from churches and other social agencies for the government to reverse the reforms, National was unrepentant, maintaining that they treated all low-income people equally. Soon state houses were sprouting across New Zealands suburban landscapefrom Orakei to Oamaru and grateful tenants were turning them into homes. Property. Yet this offered nothing to those who had little hope of purchasing a home, nor could it possibly reverse the growing housing shortage. The Kinga Ora property portfolio was valued at the end of each financial year. Testimonials from satisfied buyers were used to promote further sales. There are always consequences to policies and they cant have it all there way and this point needs to be raised. Treasury A-Z Home Information and services Financial management and advice Assets and liabilities What We Own Income from State Asset Sales as at May 2014 New Zealand Government Asset Sales as at 30 September 1999 - Completed Sales New Zealand Government Asset Sales as at 30 September 1999 - Completed Sales New Zealand Steel Community housing providers have an important role to play in housing those in need, but the first and last provider of public housing must be the state. Some 69,000 state houses are managed by Kinga Ora - Homes and Communities,  most of which are owned by the Crown. Large-scale sales of state houses during a housing crisis do nothing to help house our most vulnerable people, Phil Twyford says. In the past, private landlords were unable to look after those in need of state housing, he said. This mindset meant that others in greater need of state housing got locked out. (With the economy on the mend, and marriage rates rising, more and more people wanted a place of their own.) In his state of the nation speech today Key said Housing New Zealand wouldstillremain the biggest provider of social housing with at least 60,000 properties by 2017, compared to68,000 now. New housing was built in higher densities, with mass state housing areas emerging in south Auckland and Porirua, north of Wellington. This aimed to provide more state-built homes for city workers to purchase. Later interventions by New Zealand governments would oscillate between these two bookends. Despite the promise of greater choice for state-house tenants, this was her only option. As housing researcher Charles Waldegrave notes: Prior to the reforms, at least those in state houses on a benefit, paid an affordable rent and kept 75% of their residual after tax income, while those in the private sector rentals struggled with market rents. NZ Prime Minister Jacinda Ardern says the previous National Government's sell-off of state housing stock is behind burgeoning waiting lists. At the same time it refused to build cheaper dwellings for Maori on the grounds this would compromise its ambition to raise housing standards. Total state housing stock. These homes were sold because they were no longer fit. Since 1999, Labour-led governments have constructed 6000 new state houses, mostly in Auckland, where, in mid-2007, there are 11,000 people on the state-housing waiting list. Present opinionregarding the effectiveness of the 1990s housing reforms is unflattering. That equates to 1398 houses sold and 1531 built in Nationals last three full financial years in power. Some state houses are in such a state it's better that we get rid of them. Income-related rent subsidies would also be opened up to non-Housing NZ homes, Key said. 1923 - Housing Branch of the Labour Department merged with State Advances Office, 1936 - Mortgage Corporation merged with State Advances Office to form the State Advances Corporation, 1938 - Housing Construction Department formed, then later that year becomes Housing Division of the Ministry of Works, 1974 - State Advances Corporation merges with Housing Division of the Ministry of Works to become Housing Corporation of New Zealand (replacing National Housing Council of New Zealand). There's a waiting list to get into state houses - as at February 2021 there were over 23,000 people on the waiting list, plus their families. It was soon evident, however, that the rotten core was to remain. To some extent the government had only itself to blamefor its burgeoning waiting list. The experience of both the 1890s and the 1990s was that New Zealands private sector was either unable or unwilling to deliver decent and affordable housing to the poor, necessitating state intervention. Prime Minister John Key today confirmed the Government planned to sell 1000 to 2000 state houses in the next year to community-housing providers, with with more sales possible in coming years. Key said there was a lot of potential for other providers of social housing and the Government wanted that number to grow with the aim of more people getting into social housing over the next three years. Sales to renew and grow the stock are quite different from the systematic large-scale sales used by the previous government to reduce the role of Housing NZ. Rather than spreading the existing cake more widely, National should have baked a bigger cakepresumably paid for by higher taxes. As at June 30, 2019, it was worth $28.6 billion, she said. The Government would also accelerate development of Housing NZ land, but it was still considering how and where that would happen. Our Customer Support Centre provides on-the-spot responses for all enquiries 8am to 6pm, Monday to Friday and 24/7 for urgent calls. Which pushes up prices of land and building. The first cast off his jacket and hat and, with a large divan chair perched on his right shoulder, marched up the front steps, swung through the door and deposited the chair in the McGregors new living room. Advice and support for farmers, growers, whenua Mori owners, and rural communities. Oh the National Party now admit they sold too many State Houses Beijing Mullers extraordinary defence ofChinese Spy Trainer sign petition to have Jian Yang removed from the National Party, To all those attempting to sanitise Paula Bennetts legacy one simple image in response. The government's sale of a further 1600 state houses will do nothing to fix the housing crisis or improve tenants' lives, Labour's housing spokesman Phil Twyford says. This is true of the previous National Government, although National's 2020 policy was to continue building state homes. Nonetheless, it remained committed . Greg Orchard, a manager in the organisation in the 1990s, believes that the business targets took precedence over the social ones: The social aspect of state rental housing was farmed off to theDepartment of Social Welfare. Before, I could get angry. The emergency declaration will apply to the six regions that have already declared a local State of Emergency: Northland, Auckland, Tairwhiti, Bay of Plenty, Waikato and Hawkes Bay. We need to get a move on. The Corporation built in inner-city areas and developed different housing types, such as cluster housing. This Government is committed to not only keeping these houses within state ownership, but increasing the number of state houses. While the most needy will continue to be catered for through state-housing provision, the question remains as to who is going to house all those ineligible for state housing but unable to afford market rents. One conference delegate expressed the belief that most applicants were already living in satisfactory houses but hoped to get better houses at a cheaper priceno wonder the waiting list was so long. The initiative was part of a wider policy to slash dole queues and prime the economy. To encourage more community social housing it would sell the 1000-2000 Housing NZ homes using "an open and competitive process" that would be used for social housing. The State Housing Action Network said on Friday that it understood Bennett met with Roger OSullivan, recently appointed New Zealand manager for Henry Cheng Kar-Shuns Pinnacle Group, on December 11 to discuss buying state houses. Nicola Willis, who took the housing portfolio in a recent reshuffle, told RNZ the net reduction in state houses under the last National government showed that governments needed to continue increasing the number of state houses. 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The poor response to the scheme led the government to rethink its role in the housing market. Government sells 146 state homes after Labour promised a halt to state house sales. The final factor was the Liberals belief that rising city rents were fuelling inflation and threatening economic well being. (First published in May. They cannot be promoted if the conditions make it evident to the young people that they are not expected to be responsible for their own homesthat they are, in fact, to be discouraged and told to take their place in the queue for State houses. In July of that year, the National administration severed the political consensus that governments should directly subsidise state-house rentals for low-income earners and introduced a new policy: full market rents. On October 5, National leader Judith Collins unveiled a plan to let state housing tenants buy their own properties. As long as tenants abided by the terms of their lease they would be permitted to stay in their home for life. The creeping privatisation of the workers dwellings was completed when William Masseys conservative Reform government sold the remaining state-housing stock. This is a pre-emptive clean-up operation before the election (probably initiated by Hooton). Another turn-off was the expense. A spokeswoman for Housing Minister Megan Woods said the Government made it clear that stopping the sell-off of state housing did not mean some individual houses that were not fit for purpose would not be sold. Move house. This receded with the Great Depression of the 1930s. Massey University associate professor Grant Duncan says it's anybody's game at the next election. Still grieving for her mother, Olivia was left reeling by the news. The Workers Dwellings Acts had pointed in one direction: the construction of state rental houses. Many of the sales were to foreign buyers who had neither citizenship nor residency. The following year, Housing New Zealand Corporation, HLC and Kiwibuild merged to become the Housing and Urban Development Authority, Kinga Ora Homes and Communities (Kinga Ora). The Government has sold at least 146 state homes, worth more than $30 million, since late 2017, according to figures released under the Official Information Act from state housing agency Kinga Ora.