Robertson writes to Reserve Bank over soaring house prices, wants to give first home buyers ‘a shot’

PHOTO: Grant Robertson

Finance Minister Grant Robertson is making a move to try and get the housing market under control – as prices skyrocket and demand continues to rise.

The Government’s review of housing settings is to focus on improving access for first home buyers and to ensure the housing market did not distort the economy.

Robertson pledged they would do “everything we can do to enhance supply and look at other measures”, which included asking the Reserve Bank to assess what tools it could use around housing demand.

“Everybody needs to be involved,” Robertson said. “We can and should do more. This is a situation (that is) unprecedented… we must look at all the levers.”

Robertson said the intention was to have stability in the housing market and for first home buyers to “know they will have a shot”.

He was also seeking advice around extending and altering the bright line test and the rules around foreign buyers.

The bright line test places income tax on the gains from the sale of a residential property within five years, other than the main home.