Interesting to hear Palmerston North City Councillor Susan Baty say"there is no housing crisis in Palmerston North".

She would say that ,as a landlord and a supporter of the present government's social housing agenda.

That there is no housing crisis will be news to the community and church groups who work along side tenants in the rental housing market.There is a real shortage of decent,affordable rental accommodation around the city,and HNZ is selling 500 state homes which will have a big impact on those seeking affordable housing in the city.

HNZ invented a system for social housing that only they understand,seemingly finding way's to house to house as few families as possible.In reality HNZ is disappearing bit by bit,which just add's to the crisis being faced by a growing number of families.

So good on City Councillor Chris Teo-Sherrell for putting forward the recommendation that the city council should be building 12 houses per.year.The need need is there and private investors are not interested in that end of the rental market.

So let's see the city council show some leadership in the crisis as the population of the city are growing older and the proposed housing is needed now not in 10/20 years time.

Affordable Housing

                  Affordable housing has become a very fashionable idea recently.Just like taxpayers propping up low wages,affordable housing is only needed because ,in many places,the private rental market is out of reach for many tenants.

                  The New Zealand Productivity Commission has stated that the Accommodation Supplement paid to landlords,costs $1.3 billion annually.While this subsidy reduces the pressure on low income households,the bottom 20% of households still pay more than 40% of their disposable income on rent.It has also be noted that any landlord reduction in rent,will largely be offset by reductions in the accommodation supplement,this will not make a tenant better off.

                    For a growing number of people,renting is the only potion.Political parties seem to have a pre-occupation with home ownership but the real challenges are to be seen in the private rental market.One of these issues,is the withdrawal by central government in providing state housing for the growing number of families who need low cost rental accommodation.Any reform of the housing market has to help tenants  by offering them an affordable rent,and by increasing the state housing stock.

Kevin Reilly