The housing reforms and an across-the-board cut in all welfare payments (excluding superannuation) were intended as a means to this end. Overcrowding became acute. ", Finance Minister Bill English speaking in Parliament (file photo) National's plans to review a further 3000 tenants put stress and pressure on tenants who were elderly or in difficult circumstances, Little said. Rubbish and effluent festered in city streets and, despite a rising death toll from diseases such as typhoid, little was done to remedy the situation. Related News Governments since the Liberals had done a sterling job in selling the benefits of becoming ones own landlord, with homeownership rates tracking upwards until the Depression had forced thousands back into rented accommodation. Still grieving for her mother, Olivia was left reeling by the news. Further details were soon revealed: the project would be financed through cheap Reserve Bank credit; and houses would be built by private enterprise, overseen by a new Department of Housing Construction and managed by the SAC. 2001 - Housing Corporation of New Zealand merged with Housing New Zealand Ltd and Community Housing Ltd, together with housing policy staff from Ministry of Social Policy, to form the Housing New Zealand Corporation. Finance Minister Bill English confirms the Government will need $1.5 billion to upgrade state houses as they are sold to social housing providers. While it made sense for the Government to sell housing stock that may not be fit for purpose or not geographically suited to demand, it had not done what it said it would and stop the sale of state houses, he said. "We are looking to get a fair and reasonable price for these properties, bearing in mind they're being sold as ongoing houses with high-need tenants" Key said. Within a few weeks I saw a couple of India blokes painting these earth quake prone flats. "We take that responsibility seriously, so some of those homes will be the very homes that get demolished and make way for new builds," Dr Woods told Newshub. In 1905 Prime Minister Richard Seddon passed the Workers Dwellings Act and the first state houses were built for inner-city workers to rent. In November 2022, the nationwide median house price plunged by 12.4% to NZ$ 810,000 (US$510,557) compared to a year ago, in stark contrast to the whopping 23.8% y-o-y growth in November 2021, according to the Real Estate Institute of New Zealand (REINZ). An inherent tension in the reforms was the brief for Housing New Zealand to meet both business and social objectives. In the lead up to the 2017 election Labour said if elected it would immediately end the sale of state houses. 1992 - Housing Corporation of New Zealand split to form: 1994 - Community Housing Ltd formed as a subsidiary of Housing Corporation of New Zealand, 1998 - Portions of responsibility of Ministry of Housing transferred to Ministry of Social Policy. Such was the exodus from Cannons Creek that the roll at the local primary school plummeted. Twyford said it was the end of large-scale state housing sell-offs. Waldegrave thinks a fairer system would have been to increase state assistance to private renters to bring them into line with state-house renters. Jenna Lynch Zane Small The Government has sold or demolished nearly 2000 state houses since July 2018, Newshub can reveal. Thousands of families will not have new landlords after the Government stopped the sale of up to 2500 state houses in Christchurch. What I dont think is that that was good; what I would like to see is the Government continuing to build state houses, thats absolutely a policy that either National or Labour needs to continue in the years ahead.. Labour had underestimated New Zealanders love affair with homeownership, which, for many, had become a secular rite of passage into adulthood. The first ever Stats NZ publication of property figures showing tax residency of those transferring property happened in 2018. In October2006, 19-year-old Olivia Maana from Panmure, Auckland, opened a letter from Housing New Zealand Corporation and gasped. But they were not being sold as private homes or rentals so they might not achieve book value. In 1905 Seddon introduced the Workers Dwelling Bill, providing suburban houses for inner-city workers. "What this is doing is allowing us to get the right home in the right place," Dr Woods explained. As cities grew and land became scarcer, lanes and alleys were driven through the backs of properties and lined with flimsy, poky cottages for workers. On the other side, Labour fell back on its record and promised more of the same. Having looked to Labour to build them a home, they now turned to National to let them buy it. The political party or coalition of parties that commands a majority in the House forms the government. It also defended the sale of houses in (now) affluent areas, such as Orakei, explaining that selling a valuable property provided enough money to purchase two or more cheaper houses elsewhere. In late October 1950 David and Mary McGregorreceived a letter from the SAC inviting them to buytheir home for the modest sum of 2200. To Labour, this model had been both desirable and efficient: desirable because tenants could enjoy all the advantages of homeownership without the hassles of upkeep; efficient because the state could achieve economies of scale, in planning and construction, that were unattainable in the private sector. But, despite the criticism, Labour has itself quietly sold as many as 105 state houses to tenants since it took office. If Olivia was expecting the media to argue her case, she was to be disappointed. This is a pre-emptive clean-up operation before the election (probably initiated by Hooton). Following the 1991 benefit cuts and the increase in state rents, Lillian faced the prospect of paying $99 a week in rent, leaving her just $30.81 to live on. Olivia was painting herself as martyr and making her removal as difficult a process as possible. The NSW Government sold the Sirius building at The Rocks, near Sydney Harbour, for $150 million earlier this year. The then-Housing minister Phil Heatley said it would let state housing tenants get on the property ladder. In addition to the prime minister and his cabinet colleagues, some 300 people stomped through her home, muddying floors and leaving fingerprints on freshly painted fixtures. The Liberals were determined that their workers dwellings would not be slums in the making. For Carr at least, Nationals claim that homeownership encouraged self-reliance, a sense of pride and responsible citizenship rang true. With other families in greater need of the house than her, she, her 14-month-old son Santana and her 13-year-old cousin Jordon would have to pack their belongings andmove. National had hoped to sell many more houses. The Minister also announced the formation of a new agency Housing Urban Development Authority (HUDA), bringing Kiwibuild together with Housing New Zealand to provide support to MHUD. Her landlord refused. The Government built 273 state houses between July and December, but says it is still on track to complete the 1600 public housing places, most of which will be state houses. Community-housing providers were not equipped to pick up the state houses that would be sold off and offer a "highly-sophisticated, complex" housing rental system. Meanwhile we have 25,000 on the state house waiting list, up from just over 5,000 when Labour came to power in 2017. Unable to find a new job, she had reluctantly gone on the dole. Survey director,Les Church, expected that most people would continue paying their rent but forgo food, clothing and essential services, such as telephones. The sell-offs were made under a little-known policy launched by the John Key Government in 2009. The issue has been tossed back and forth between rival political parties for a century now, and with housing becoming less affordable for many, its likely to be debated for a while yet. Most of the 45 people dont have satisfactory or realistic alternatives to their present state house, butthey cant afford that either., By 1995 further consequences of the reforms were becoming evident. Demand forstate houses has nearly always outstripped supply, and applicants have invariably had to meet eligibility criteria. It was not about staying there for the sake of staying there, she said. The current Government had boosted the construction of state houses. He didnt think Greymouth tenants were the homeowner type or had the cash resources to meet necessary deposits. Later interventions by New Zealand governments would oscillate between these two bookends. They were not geared up to be a mass provider of housing across the country like Housing NZ was. There were houses that we took down, and we took down one and replaced it with three that were insulated. They also launched a 'group building' scheme, underwriting new houses built to Government designs. After visiting British municipal-housing schemes in 1897, Premier Richard Seddon had given New Zealand municipalities the power to undertake similar projects. David had found work on the trams, and after a period living with Marys sister, the family had rented a dank and gloomy flat in the ironically namedHappy Valley. 2006 - Housing New Zealand Corporation administers Housing Innovation demonstration fund established to fund third sector social housing. Despite escalating building costs, it had refused to raise rents. The wait list has ballooned in recent years, trebling from the 5844 households on the wait list when the current Government was elected in September 2017. The final factor was the Liberals belief that rising city rents were fuelling inflation and threatening economic well being. He spruced them up a bit and let them out for $150 a week eachan annual return of 18 per cent. Reports that she was in rent arrears and had damaged the property (something she denied) meant there could be little public sympathy for her plight. "The Government has sold at least 146 state homes worth more than $30m since late 2017, despite Labour promising to stop the sale of state houses if elected to government." Just another broken promise from Labour. Critics retorted acidly that it was an equalisation of poverty. Further, houses would, as far as possible, be built of local materials. State-house tenants have benefited from both philosophies. These qualities are of the utmost importance in successful family life and national strength. This is completely different to Nationals policy of wholesale sell-offs of public housing stock which resulted in thousands of homes being sold. While most could see the logic of low-wage workers receiving subsidised housing, the sight of middle-income workers setting up home in a state house was harder to stomach. They circulated a petition in support of her staying and organised a picket outside her home. Many families in state houses aspire to achieve home ownership. The best laugh of the day went to the one-armed Lee, who carried in a lightweight birdcage, raising it, as in victory, to an appreciative crowd. Without more ado he declared New Zealands first state house officially open, returned to the van and, with the help of Minister of Works Bob Semple, carted a cumbersome dining table along the same route. A state house is demolished in Rangiora Ave, Palmerston North, in 2019. In 1996 the government also introduced a scheme to helpstate tenants buy their homes. The Kinga Ora property portfolio was valued at the end of each financial year. googletag.pubads().definePassback('/9201682/TDB_Extra_Ad_1', [[300, 600], [300, 250]]).display(); Launched on Friday 1 March, 2013, the TheDailyBlog.co.nz unites New Zealands leading left/centre-left commentators and progressive opinion shapers to provide the other side of the story on todays news, media and political agendas. Well surprise surprise surprise!!!!!. Green Party co-leader Metiria Turei asked Mr English if he was ruling out selling Housing New Zealand-owned homes to private developers. Among the happy homeowners was F.W. David had rugged good looks and a beaming smile; Mary was more restrained, but nurturing and pretty; both children were bonnie and photogenic. But Clark Hennessy, Bennetts spokesperson, said no such meeting took place and that network convenor John Minto was making stuff up. Surely it was better to build workers homescloser to central-city workplaces. Megan Woods took over from Phil Twyford as Housing Minister in June. Only people on welfare could rent a state home, at full market rent, with accommodation subsidies through the welfare system. The fundamental premise of the scheme was that access to high-quality housing was a right of citizenship, on the same level as the right to education, sanitation, to good and abundant water, to an adequate road system and to a certain amount of medical care. The 5,000th state house was built in 1939. None had been built. And that was just the beginning - the house is old and cold. Christchurch social housing advocate Stephen McPaike lives in one of 1219 existing council-owned units that have had a heat pump installed so far this year. It was the family home. Just about all of us know someone who grew up in a state house. Certainly investors could be onto a winner. Today it acknowledged many state houses were not up to standard and had not been properly maintained. * She's not a doll, so don't call the prime minister Cindy * Government sells $30m worth of state houses after Labour promised to stop sales. The perceived unfairness of this systemthe most needy often missed outled to the establishment of allocation committees comprising respected community members. 2014 - Responsibility for managing applications, assessing eligibility for social housing and administering income-related rents is transferred from Housing New Zealand Corporation to the Ministry of Social Development, to help ensure all social housing providers are on an equal footing. With state housing rising on the sunny side of the city, the family had seen the chance for a better life, so had thrown their names into the ballot for one of the completed houses. Whereas under Labour state houses were advocated as an alternative form of tenure for all New Zealanders, under National state housing became a residual provision for those locked out of homeownership. It had a far better record on state housing, adding thousands of houses to the stock, although this had not been enough to keep up with a skyrocketing housing wait list. Learn about the house buying process. We also do not see selling off state houses as a way to increase the supply of affordable homes, as National does, she said. 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. 1949: Election of National government, which in 1950s promotes sale of state houses to tenants 1952: 12 Fife Lane bought by McGregor family 1974: Housing Corporation of New Zealand formed, by merging SAC and Housing Division of Ministry of Works 1978: 100,000th state house completed in Christchurch Draw attention easily with with our giant message flags. Mr English also said he understood the Salvation Army was in the process of registering as a community housing provider. These homes were sold because they were no longer fit. And there was an assumption that Social Welfare support would be enough. 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.