Minister rules out 'empty homes tax' to battle homelessness

Saturday, 5 May 2018

Housing and Urban Development Minister Phil Twyford says taxing Auckland landlords who keep their homes empty isn't an option on the table.

The government has ruled out an 'empty homes tax' to battle homelessness in Auckland.

Experts have warned Auckland's homeless crisis is set to spike to worse levels this winter than any previous year.

John Minto has called for a tax on landlords who keep their properties empty in Auckland.

Part of the blame is being put on a Housing NZ policy of boarding up state homes months in advance of plans to redevelop sections.

As a result 'there are people sleeping in cars tonight who didn't have to,' said Salvation Army social policy analyst Alan Johnson.

Alan Johnson is critical of how Housing New Zealand is going about its redevelopment of housing in Auckland.

* Housing stocktake blames homelessness on drop in state housing

* Housing Minister asks Statistics NZ to measure homelessness more often**

Meanwhile, Christchurch Progressive Network convenor John Minto was urging the government to consider an empty homes tax of the same kind adopted in Vancouver, Canada.

It would penalise landlords in the Super City who are keeping homes empty.

The government's announcement on Friday of $100m of funding for homelessness, with $37m allocated to finding 1500 new places by the end of winter, was 'poor use of taxpayer money,' Minto said.

'It is stupid for the government to spend tens of millions on motel accommodation for homeless families when we have 33,000 empty homes in Auckland.'

In June 2016 Auckland had 33,000 homes vacant – a vacancy rate of 6.6%, higher than any Australian city, he said.

'An empty homes tax would mean large numbers of 'ghost' homes would be available to rent at a time when homes are desperately needed.'

Housing and Urban Development Minister Phil Twyford said the government was not considering an empty homes tax at this stage.

'The Labour-led government has a comprehensive plan to address the housing shortage including cracking down on offshore speculators and changing rules around negative gearing,' Twyford said.

He also would not be asking Housing NZ to change its policy around leaving its homes empty months ahead of redevelopments.

'Decisions around moving tenants while state houses are refurbished is an operational matter for Housing NZ.'

Monte Cecilia Housing Trust chief executive Bernie Smith was one of the housing experts who had criticised Housing NZ's approach.

He said he supports HNZ's policy of replacing single homes on large sections with higher-density housing, but said the way HNZ was going about it was worsening problems.

It should stop demolishing homes until it was ready to build replacements for the old ones, he said.

'There's no point having sites all over Auckland where houses have been demolished or shut-up. It only creates further homelessness.

Johnson agreed with Smith's criticism of Housing NZ.

'One thing I would note is just how poor Housing NZ has been when it comes to demolishing properties and leaving its sites empty. It's hopeless,' Johnson said.

'We wouldn't have the housing crisis we've got if they [Housing NZ] stopped demolishing them.

'There are many hundreds of houses that would otherwise have been occupied by people [but have been demolished].

Housing NZ asset development group general manager Patrick Dougherty said the agency has an 'extensive' programme to build new houses across Auckland.

Housing NZ plans to deliver about 5000 new state houses, of which 4300 are being built, up to 2019-2020, Dougherty said.

It was also releasing land to enable thousands of additional affordable and market homes to be built in Auckland.

He said there were various reasons why the agency's developments would take longer than first planned, such as redesigns, further information requests and updates, and granting of consents.

'Then there are the building stages involving the shutting off of utilities to, and safe demolition of, old buildings which can be further impacted by events beyond the control of developers, such as bad weather or the discovery of materials that need special processes such as asbestos removal.

'These are all events that are typical of any building process, from a single dwelling to multiple dwellings on a large scale.

'When it comes to Housing NZ projects, especially redevelopments on existing sites, there is the added complexity of moving tenants at the right time.'