Government to help low income earners rent homes

1.00pm

The Government is proposing an increase in the accommodation supplement as part of a package to help low income earners.

Housing Minister Steve Maharey is due to release a discussion document on a 10-year strategy for low and middle income earners in Auckland later today.

More help for first-home buyers was also part of the strategy, but that would not happen until next year's budget.

Mr Maharey wants to increase the help for home buyers which is now offered by the Kiwibank mortgage insurance scheme.

It provides 100 per cent mortgages to couples earning up to $55,000 a year, but rising house prices have compromised loan thresholds.

Mr Maharey said today that rising rents are putting low-income families under stress.

Announcing the strategy package aimed at solving accommodation problems, Mr Maharey said the Government's aim was to achieve quality, affordable housing for everyone.

"Rising house prices and rents, especially in high pressure areas, have put many households under stress," he said.

"There are concerns about housing quality and affordability. We have an ageing population and people from many different ethnic backgrounds -- different types of housing for many different needs are required."

Mr Maharey said he hoped the discussion document would encourage debate about housing and attract submissions from a wide range of people.

Consultation on the strategy will take place over the next three months.

Among the issues canvassed in the discussion document are:

* improving housing assistance and affordability;

* responding to housing markets under stress;

* innovative home ownership programmes;

* developing the private rental sector;

* improving housing quality and;

* building capacity and capability across the housing sector.

- NZPA