Greens say more needed to 'fix this runaway housing crisis'

The Government's signalling that it will attempt to bring stability to New Zealand's housing market has been welcomed from across the House. But the Green Party is not entirely happy, saying it was a "disservice to New Zealanders not to use all of the tools in the toolbox".

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“It's something I've been pushing for, for some time,” revenue spokesperson Andrew Bayly said. Source: 1 NEWS

National's Andrew Bayly said he thought Finance Minister Grant Robertson's decision to write to the Reserve Bank was an "excellent thing to do". 

One suggestion Robertson made to the Reserve Bank was to "better highlight" that housing prices are taken into consideration when developing policy.

Robertson writes to Reserve Bank over soaring house prices, wants to give first home buyers 'a shot'

"It's something I've been pushing for for some time," Bayly said.

"The rapid rise in house prices in New Zealand is something that is bad for all New Zealanders, particularly first home buyers. This is one of the mechanisms to try and make sure we reduce or at least stop the rapid rise in house prices."

Bayly said it was not the only solution however, and criticised Robertson for the time it took for him to write to the Bank.

ACT leader David Seymour said that by writing to the Reserve Bank to suggest including asset price stability in its mandate, "Grant Robertson has vindicated ACT’s position that the Bank should consider asset prices, not just the consumer price index, when setting policy".

Calls mounting for Government to do more to rein in soaring house prices

"This move by the Finance Minister shows the role that an effective and constructive opposition party can play."

Green Party co-leader Marama Davidon said they were "glad that Government is exploring options to address the housing crisis, but it is disappointing that they’ve dug their heels in on measures that could help fix the problem".

"It is a disservice to New Zealanders not to use all of the tools in the toolbox to fix this runaway housing crisis, and that includes taxing wealth or capital."

Green's finance spokesperson Julie Anne Genter said blaming the RMA was a "tired excuse". 

"It won’t fix property speculation or land-banking. It is time to courageously put the case for measures that will help end growing inequality in this country."

A Reserve Bank spokesperson told 1 NEWS it had received the letter "and will be engaging constructively and responding in due course".