Tenants embrace home ownership opportunity

Housing Minister Phil Heatley today marked the first purchase of a state house by its tenants in over a decade with a visit to the new owners of a three bedroom bungalow in Hastings.

The proud couple had been Housing New Zealand Corporation tenants at the address since 2005, and had been waiting for the opportunity to purchase the house.

They are the first state house tenants to have purchased the house they live in of the 1445 families who have expressed an interest since the policy was launched in mid September.

Mr Heatley said the government knew when Labour removed the opportunity for tenants to buy state houses in 1999 that numerous tenants were on the verge of buying and were left disappointed.

"Some of those tenants and many others have waited a decade to be given the chance to become home owners, rather than Labour's preference that they become life-long beneficiaries."

Under the National government's policy, eligible state houses are available for sale to tenants at market prices.  Those tenants most likely to be able to afford to buy are those who earn enough to have moved from state-subsidised rental to paying full market rent. 

Mr Heatley described the policy as a "win - win - win."

"All the money Housing New Zealand earns from the sale of homes to tenants will be reinvested in new state houses in areas where they are needed most.

"Each sale means another Kiwi family become home owners, local builders get work building a replacement house, and a worthy recipient of that house moves off the waiting list."

Mr Heatley said he did not expect a high uptake, particularly given the current economic environment, but that the government believed it was important to offer the home ownership opportunity to tenants as it sends a clear message that National has aspirations for all New Zealanders, even if the Labour Party does not.

However, of the 1445 tenants who have expressed interest to date, 976 have made formal applications to Housing New Zealand to purchase.  Their next step is to provide Housing New Zealand with pre-approved finance confirmation.

A further 31 applicants have approved mortgage finance and are talking to Housing New Zealand, and eight more tenants are on the verge of becoming home owners, with sale and purchase agreements underway.

The Hastings couple used the government's Welcome Home Loan mortgage insurance scheme to help fund the purchase of their house.  Their home loan was provided through the Taranaki Savings Bank.

For more information about the opportunity to purchase a state house visit www.hnzc.co.nz

And for more information about the government's Welcome Home Loan mortgage insurance scheme - which is available to all New Zealanders (depending on their means), not just state house tenants - visit www.welcomehomeloan.co.nz