[Greens-Media] (Sylvia Hale MLC) Rudd’s Plan Will Push Up House Prices

[Christopher Holley]

Rudd’s Plan Will Push Up House Prices

The most likely outcome of the Rudd housing agenda is higher house
prices, according to Greens NSW MP and housing spokesperson, Sylvia
Hale.

“The NSW State Labor Government, as well as federal Labor, has been
touting shared equity schemes as a way of allowing younger aspiring
first home buyers into the market.

“Such schemes are likely to simply stoke house price inflation to
even higher levels by enabling more people to enter the market and to
borrow more than they can ever hope to repay. When the house is sold,
the banks will be the only winners.

‘Moreover, these schemes won’t do anything to help people into
housing in low capital-gains areas such as south-west Sydney,” Ms Hale
said.

“Other aspects of Mr. Rudd’s plan to help people save for a deposit
may also be self-defeating. If house prices keep going up by an average
of 9% a year, then the goal posts will keep receding - even if taxes on
a first-home savings account are reduced.

“We need to increase the supply of affordable rental properties by
increasing funding for new not-for-profit and public housing, and by
offering tax incentives to increase supply at the lower end of the
private rental market.

“A housing summit is not a bad idea. Mr. Rudd should ensure community
housing representatives are included and there is a focus on social
housing issues.

“Neither major party wants to face up to the fact that those who own
homes now benefit from higher house prices, while those that don’t
cannot afford to buy in. They pay increasing rents to pay off someone
else’s mortgage. 

“Federal policies such as negative gearing reward people who already
have homes and allow them an unfair advantage in the housing market over
those who have no home at all.

“The current policies clearly aren’t working as we are producing
two tenure classes in Australia.

“The NSW Greens believe that only a major investment in public
housing, support for community housing schemes and an overall
readjustment of the tax system will alleviate the housing crisis we are
facing today,” Ms Hale said. 

Contact: Chris Holley (02) 9230 3030 / 0437 779 546