Key in la-la-land on home ownership crisis

John Key's National Government is in denial over the fact that record house prices are hurting families, Green Party Co-leader Russel Norman said today.

In answer to oral questions today, the Prime Minister could provide no concrete examples of moves the Government has made to reduce speculation in housing and increase the supply of affordable, modern housing. This despite official data showing that house prices across New Zealand have risen at four time the rate of inflation and twice the rate of wage growth in the past year.

"Mr Key has shown that his Government has no plan to help Kiwi families into affordable homes, and it doesn't even acknowledge that there is a problem," said Dr Norman.

"Let the Prime Minister tell young New Zealanders struggling to buy their first home that there is no crisis.

"New Zealanders are leaving these shores in record numbers, in part because they cannot find housing here that is affordable on New Zealand wages.

"A generation of New Zealanders are going to watch their children grow up via Skype unless real action is taken to reduce speculation and increase the supply of affordable houses.

"New Zealand's historically strong home ownership rate was created by government policies that helped families into homes by curtailing speculative demand and increasing supply.

"This Key Government seems happy to sit by and do nothing while the dream of home ownership slips beyond the reach of ordinary New Zealanders.

"New Zealanders want to own their homes and they deserve a government that helps them. If they can't find it in New Zealand, more and more will seek it in Australia," said Dr Norman.