Tenants to get chance to buy Housing NZ homes

Tenants living in state houses will be given an opportunity to buy their house from September.

Housing Minister Phil Heatley told The Dominion Post the scheme would be available to most Housing New Zealand tenants - but not all.

Exclusions would include homes on land subject to Treaty of Waitangi claims or land not owned by Housing NZ, blocks of flats which were not on separate titles, and any homes considered strategically important.

Housing NZ would not have to sell any house, buyers must live in the house and could not live in a state house for three years after their purchase.

Houses would be sold at market rate, as assessed by an independent valuer, and the Government would consider increasing the cap on Welcome Home mortgage guarantees to make it easier for all low income buyers.

Mr Heatley said Housing NZ would use the money from sales to build new houses.

"We're providing an opportunity for those in a state house who've always wanted to buy their home.

"It's a win-win. Someone moves into home ownership, someone else moves into the replacement house off the waiting list."

Hundreds of people were likely to take up the offer, Mr Heatley said.

- NZPA