More non-govt input needed in housing - report

File photo / Glenn Jeffrey

Increased participation by non government organisations including iwi and the private sector is needed to address a growing shortage of affordable housing, an independent report has found.

The Housing Shareholders Advisory Group, set up in February by Minister of Finance Bill English and Housing Minister Phil Heatley issued its report this morning.

The group warned "New Zealand faces a growing shortage of affordable homes which in turn is causing problems in social and state housing".

While New Zealand was lucky in that its $15 billion social housing system - which includes state housing and housing subsidies - was better positioned than that in other countries, "it is under increasing pressure and the current system does not have the flexibility to deal with this".

The group said there was no "magic bullet" to deal with the issue but that a key component missing in this country was "a substantial level of third party provision of social housing".

"We have a model of state housing that hasn't changed greatly from the 1940s so there aren't the options available to meet the variety of needs now and to help people move from state housing to home ownership".

The group, which made 19 recommendations in its report, found significant issues around the provision of dwellings to match tenants' needs, a lack of clarity about the effectiveness and efficiency of the current model, and constraints on Crown expenditure.

It recommended that Housing NZ focus on the "high needs" sector while moving to become an "orchestrator" of third party participation over the next five years.

Housing Minister Phil Heatley said today he welcomed the group's call to diversify the funding of social housing by increasing community sector involvement.

"I note the advisory group's concern that many countries are grappling with similar issues but New Zealand has yet to adopt some of the strategies observed offshore to address them," he said.

The Government had about $15 billion invested in social housing and was committed to retaining state housing, he said.

"However, a significant number of houses are in a poor state of repair, are of the wrong size, and are in the wrong places to meet demand.

"We want to ensure this significant asset is utilised to the best effect. We also want the system to be fairer and to work better for those families most in need."

Finance Minister Bill English said the report needed further consideration, because the group had decided to widen its brief to include housing affordability and the relationship between social housing and the wider benefit system.

The Government has asked the group to discuss its findings and recommendations with key stakeholders in the wider sector before it would consider any decisions on the report.

"We want to ensure we carefully consider the report and consult with the sector before considering any changes to government policy," Mr English said.

The Government would only consider making changes to the current system if those changes would make the system work better and deliver results for those most in need.

The group would spend the next six weeks engaging with the sector and would report back later this year.

Over the next five years, the group envisaged:

* joint ventures or other arrangements with third parties such as social agencies, housing associations and iwi for the supply of "a substantial portion of new social housing demand"

* appropriate outsourcing of risk, construction and project management for smaller housing programmes

* the establishment of a stand-alone organisation for "major urban renewal schemes" in conjunction with local or regional bodies, community groups and appropriate third, or private sector partners".

The seven member group is chaired by Alan Jackson formerly of management consultancy firm Boston Consulting Group who is a director of Fletcher Building. Other members include Major Campbell Roberts of the Salvation Army, Diane Robertson of the Auckland City Mission, iwi representative Paul White and investment banker Andrew Body.

- With NZPA