Housing New Zealand sales ripping off taxpayers - Labour


Labour is accusing the Government of a Housing New Zealand fire-sale, saying hundreds of state homes have been sold off well below market price.

It says the Government has made around $60 million between July 2015 and April of this year, by selling off properties it says are too damaged or in areas of low demand.

But Labour's housing spokesperson, Phil Twyford, says some of the homes are actually in exclusive Auckland suburbs.

"There were, according to this data, seven properties in Orakei in east Auckland, sold. And they were sold below the valuation to a total of about $10 million, and one of them was a $2 million house," he told The Nation.

"The Government, in their own words, want to free up capital, and they've told Housing New Zealand explicitly to hurry up and sell off this stock. I think that explains why it's being sold off at below valuation."

Mr Twyford says the discounted sales are a big hit to taxpayers, and it's disturbing that Housing New Zealand is getting rid of state houses across New Zealand at a time when homelessness is on the rise.

"The National Government has made a net reduction in the total number of state houses of 2500, at a time when Government agencies are referring people to live in unconsented garages."