Standard and Poor’s warning of housing crisis

new-zealand-labour-party

Wed Aug 24 2016 12:00:00 GMT+1200 (New Zealand Standard Time)

Standard and Poor’s warning of housing crisis

Wednesday, 24 August 2016, 3:17 pm
Press Release: New Zealand Labour Party

Grant Robertson
MP for Wellington Central
Finance Spokesperson
MEDIA STATEMENT

24 August 2016

Standard and Poor’s warning of housing crisis impact on banks

The National Government’s failure to address the housing crisis is leading to dire warnings from ratings agency Standard and Poor’s about the impact on the strength of the economy and New Zealand banks, says Labour’s Finance spokesperson Grant Robertson.

“Standard & Poor’s analyst Nico DeLange has warned of the consequences that a sharp correction in house prices would have on the financial sector. Mr DeLange said: ‘If it were to occur - with about 56% of registered banks' lending assets secured by residential home loans - the impact on banks would be amplified by the economy's external weaknesses, particularly its persistent current account deficits and high level of external debt’.

“He also raised concerns about population growth and the lack of housing supply reducing the impact of the Reserve Bank’s use of macroprudential tools to rein in the housing market.

“This is a serious warning from a reputable source. The Government has refused to listen to any number of warnings from banks, the Reserve Bank and even the Treasury. They are out of touch and out of ideas.

“Only Labour’s comprehensive housing plan of building thousands of affordable homes, establishing an Affordable Housing Authority to get developments done, and clamp down on speculators will fix the housing crisis,” says Grant Robertson.

ENDS

Advertisement - scroll to continue reading

a.supporter:hover {background:#EC4438!important;} @media screen and (max-width: 480px) { #byline-block div.byline-block {padding-right:16px;}}

Using Scoop for work?

Scoop is free for personal use, but you’ll need a licence for work use. This is part of our Ethical Paywall and how we fund Scoop. Join today with plans starting from less than $3 per week, plus gain access to exclusive Pro features.

Join Pro Individual Find out more

Find more from New Zealand Labour Party on InfoPages.