The taxpayer, rather than developers and home buyers, should pick up the bill for connecting new homes to water, sewerage and other council infrastructure, think-tank the NZ Initiative has recommended as a measure to control house prices.
The proposal is one of three the think-tank came up with in areport on home affordability put out yesterday.
NZ Initiative executive director Oliver Hartwich said declining home affordability was down to "poor policy which has fostered an anti-development sentiment among local councils".
The think-tank proposes a "Housing Encouragement Grant", to be paid by central Government, be benchmarked on the GST levied on the cost of building the house, which would mean a $60,000 grant for a $400,000 house.
The report also recommends stripping the provision of water from councils and making that the responsibility of five specialised council-owned companies across the country, including Auckland's WaterCare.
