The Government has thrown some cash at its housing headache, announcing a total of $396 million in housing initiatives.
About $120 million will go toward 750 more social housing places in Auckland, while $80 million will go towards an increase to income-related rent subsidies to tackle rising rents.
Social Housing Minister Paula Bennett said with rents skyrocketing and low incomes stagnant the Government will be picking up the bill for those who receive income-related rent subsidies.
An extra $52.3 million will go toward social housing including the already announced $41.1 million for emergency housing places and an emergency housing special needs grant.
"A large portion of this funding is directed at social housing in Auckland, where the tight property market also has an effect on those in social housing. Rents are increasing and more social housing is required," Ms Bennett said.
But when it comes to addressing the root cause -- Auckland's "tight property market" -- the Government is relying on beefing up last year's idea.
It's put $100 million towards freeing up public land for housing -- an extension of the $52 million it pumped into the programme last year.
Housing Minister Nick Smith said the $52 million had resulted in agreements for 20 parcels of land -- he admitted during the week the total land amassed was just 13 hectares.
But he did say there was more to come.
"The Government recognises that the Auckland housing situation is one of the biggest challenges the city faces and will soon release its National Policy Statement on Urban Development, which will direct councils to adjust their plans to allow for more development if necessary," he said.
There is also $36M going into housing improvements -- $18 million going toward the Warm Up NZ initiative, insulating rental homes of low income tenants and $18 million toward expanding the Healthy Homes initiative, with the aim of reducing illnesses caused by young children living in cold, damp homes.
Newshub.
