Minister Bishop right to sell surplus state houses

Responding to this weekend's reports on selling state houses, Taxpayers’ Union spokesperson, Tory Relf, said:

“Minister Bishop has it right. There is no reason for the Government to hang onto a house merely because it owns it. The Government should always be prepared to recycle homes that don’t meet current requirements and use the proceeds to buy or construct homes of the right type and in the right place.”

“The Government should accept a price close to the home’s market value. Capital or rateable values are often outdated and don’t accurately reflect what a property will sell for. The most reliable estimate comes from a professional market valuation by a qualified valuer.”

“Kāinga Ora has a pressing need to sell homes it does not need to get the $18 billion of borrowings it has accumulated over the years down to more manageable levels. Servicing this debt cost $644 million in the last financial year alone — money that could otherwise be used to build more homes for those who need them most.”

“As well as retiring debt, we agree with Minister Bishop’s sentiment that Kāinga Ora should be investing where the need is greatest, not locking up scarce taxpayer capital in properties in one of the country’s most expensive suburbs that could fund several new homes elsewhere. Selling high-value houses in suburbs like Remuera and reinvesting the proceeds into homes where they are actually needed is simply common sense.”