Yet again the Reserve Bank has been forced to clean up National’s housing mess with the Government clearly incapable of solving the home affordability crisis, says Grant Robertson.
“The Reserve Bank’s plan to effectively restrict lending on investment properties has real merit if it helps level the playing field for first home buyers.
“But the Reserve Bank should not be sent in to clean up the mess the Government has left behind. Graeme Wheeler is the Reserve Bank Governor, not the Housing Minister. Nick Smith is missing in action.
“National needs to learn its lessons from the crippling effect LVRs have had on first home buyers and the regions. Bill English didn’t even ask about the impact of LVRs on first home buyers before he gave the Reserve Bank the green light to push ahead.
“The first question on his lips should be: ‘will this make it easier for first home buyers?’ Only then should he give it the thumbs up,” says Grant Robertson.