The Bank of England's warnings over the last month about the affordability of mortgages worth more than four times income has sparked speculation the Reserve Bank of New Zealand could impose some sort of cap on mortgage to income multiples.
Here's 8 things worth knowing from the detail of the NZ Initiative 's 'big bang' plan for reforms of Council funding arrangements and water infrastructure to improve housing affordability.
The New Zealand Initiative has issued a third report on the hot topic of housing affordability, including a range of measures to encourage councils to expand housing developments and to compete with each other. They include a type of rebate to councils on GST paid on new houses, reforms of water authorities and privately financed infrastructure for new suburbs. It even suggested a type of income tax paid to councils to encourage development.
Finance Minister Bill English gave some examples of a new central government-led localism at the launch this week by Local Government New Zealand (LGNZ) of a paper it commissioned from The NZ Initiative 's Executive Director Oliver Hartwich on localism and government. English cited plans to roll out 'Social Sector Trials' currently being run with troubled youth in six small towns to 10 larger towns and cities.
Local Government New Zealand (LGNZ) called on Wednesday for a national debate about how local government is funded and whether power over locally delivered services such as health, education and police should be devolved away from an increasingly centralised Government to local governments. Suggestions included regional income taxes paid to councils and payment of a portion of mining royalties to councils rather than the central Government.