Financially struggling Kiwis may be offered half shares in a property by the Government, under a scheme aimed at combating the country's plunging home ownership rates.
Wednesday, March 9th 2005, 6:04AM
by The Landlord
Housing Minister Steve Maharey has told The Press that Labour is likely to introduce a "shared equity" scheme, where the Government subsidised those who were struggling to buy their own home by becoming part-owners in property.
He said some kind of scheme where the Government rewarded people who had saved had been "quite loudly" hinted at for inclusion in this year's Budget.
"We want to see more home ownership," Maharey said. "Shared equity is something we have considered and are looking at implementing."
Yesterday, the Salvation Army released the results of a major report into home ownership in New Zealand.
The report, From Housing to Homes, highlights a growing home ownership crisis, with average Kiwis increasingly unable to escape the rent trap by buying their own properties.
Home ownership has dropped from a peak of 73.8 per cent in 1991 to 67.8 per cent.
"New Zealand's home ownership is a problem, both economically and socially, but there are options available that can reverse this trend and make home ownership a reality for many low and modest income households who are currently priced out of the market," said Salvation Army social policy director Major Campbell Roberts.
