If you build it...

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Two solutions to tackling the housing problem resonate in the boardroom. Seventy-two per cent of CEOs like the sound of educating young New Zealanders to start small with housing while 66 per cent want to see the introduction of loan to value ratios (LTVs) - a move that will force buyers to find high deposits before being able to get a mortgage. Requiring LTVs is currently under consideration by the Reserve Bank, but there is evidence banks are already tightening mortgage requirements.

Surging house prices, particularly in Auckland, mean New Zealanders are increasingly unable to afford a home of their own. Things are even worse for young people attempting to buy a first house.

The problem is both economic and political: until earlier this year there was an impasse between government and Auckland Council which didn't help matters as building in the nation's largest city fell way behind demand. Now the two have agreed to fast-track new developments.

National Party policy depends on freeing up land for building and removing bureaucratic barriers; Labour promises to build 100,000 new homes for the less well off. Port of Tauranga chief executive Mark Cairns believes in changing expectations. He says: "My first house cost around $90,000. I had to save 25 per cent deposit and interest rates were around 18 per cent. That was all I could afford."

Bosses like Craig Stobo (LGFA) Rod Drury (Xero) and John Williamson (Hellaby) advocate getting people away from Auckland into other centres. Williamson wants to see a government population or demographic plan which can attract or direct internal migration and industry towards other smaller cities. Don Lyon of Beca warns against applying a national solution to what is a regional problem. He says ideas relevant in Auckland don't make sense in provincial centres with ample land.

Among other comments are calls to introduce greater competition into the building materials industry while others see housing problems as a matter of supply and demand - something best left to the market.

Some support for housing accord - but will the parties buy it?

Most CEOs are largely in favour of a political accord to tackling housing demand and affordability, even if many doubt the political parties could pull it off. Fifty-five per cent say they'd like to see an accord, while 29 per cent are against.

Siemens' CEO Paul Ravlich sums up the general mood of the boardroom: "It would end up being a Clayton's accord." Another said: "Accords are usually rubbish. They are soft on urgency and don't last";

Many others express similar sentiments. Ian Macpherson of Southern Cross Healthcare said: "Central meddling is unlikely to be the sole provider of solutions." Peter Reidie from Goodman Fielder is concerned an accord could end up being a political football while NZCID chief executive Stephen Selwood is more idealistic. He said: "Issues of national significance should be subject to political accord, not opportunism."

Away from politics Deloitte chief executive Thomas Pippos says there is no easy solution other than increasing supply.

House hunting

• 55 per cent of CEOs say they'd like to see an accord for tackling housing availability
• 29 per cent are against it
• 72 per centwant young NZers educated to start small with housing
• 100,000 new built homes promised by Labour
• 66 per cent of CEOs want the introduction of loan to value ratios (LTVs)