Hawke's Bay Property Investors' Association

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05-11-2014

Questionable use of tax payers' money

“It doesn't seem like good value for NZ taxpayers to lose ownership of state houses, not receive a fair price and provide income related rents to social housing providers as well," says NZ Property Investors’ Federation (NZPIF) Executive Officer, Andrew King.

 

Social housing providers have said that state owned houses need to be sold to them at a discount and that the tenants need to be provided with heavily subsidised income related rents out of tax payer funds.  The NZPIF questions whether or not this is an efficient and appropriate use of tax payer money.

 

"If social housing providers receive income related rental subsidies for their tenants, the Government should continue to own the houses and let social housing providers manage them. This would provide flexibility for the Government if at some point in the future a problem occurs with the social housing provider," says King.

 

It has been acknowledged that many of the social housing providers are in fact very good at relating to their client base and finding solutions for housing issues.  However some of the providers have openly stated they do not have the capital to purchase large groups of state houses, even at a discounted price.  The NZPIF suggestion eliminates this problem while ensuring that, in the future, adjustments can be made to the management of this important resource to ensure the maintenance of acceptable standards.

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