Bill English: First home buyers need to have patience

Finance Minister Bill English has said he'd "counsel patience" for those looking to buy their first home in the Auckland housing market.

The Finance Minister told Q+A that Auckland house prices won’t go up forever. Source: Q+A

Speaking to Corin Dann on TV One’s Q+A programme, Mr English said "if people feel like they can't really make it now and feel secure about being able to service that debt, then if they're patient, they will see a housing cycle.

"There's a belief in Auckland house prices will go up fast forever. That is not the case."

Mr English said prices growing 85 percent in Auckland over the year was a "problem that's been 20 years in the making" – and the Council was mainly to blame.

"Auckland spent a lot of time over the last two decades with planning rules designed to prevent Auckland growing out, and they never really succeeded in persuading Aucklanders that it should grow up.

"And so now we're dealing with the consequences of that planning as well as a sharp downturn in 2008 with the GFC, and that took all the confidence out of the building industry, so not much got built for a while, and now there’s a very substantial catch-up going on now."

He said the Government would be watching for what the Council adopts from the final recommendations to the Unitary Plan this Friday and although it hadn’t considered the idea of commissioners stepping in, it would consider "whether there's some kind of persuasive or legislative process to ensure that if the plan is sound, that the council adopts it."