Property Institute questions government housing policy

First time buyers have taken out more mortgages than any other buyer group over the past five years, excluding the Auckland market, according to the Institute's report.

Released alongside data company Valocity, the report tracks mortgage registrations across the country. It reveals first time buyers took up the biggest share of registrations over the five years to March 2018.

In the year to March 2016, first time buyers took out 40,000 mortgages, a 24% share of all mortgage lending. In the year to March 2018, the figure soared to 27%, though volumes dropped to 32,000.

Property Institute of New Zealand chief executive Ashley Church describes the findings as a “bombshell” and says the data could force a rethink of government housing policy: “Both National and Labour have been fixated on addressing the situation facing first home buyers in order to help more of them get into the market – but these figures suggest that this may not be the problem we all believed it to be.”