The Government is planning to sell state houses to tenants, and lease large tracts of public land to first-home buyers in a major shake-up.
Minister of Housing Phil Heatley confirmed a scheme aimed at developing public-owned land for first-home buyers throughout the country would be released early next year.
Under the Gateway Housing scheme, the Government plans to convert large tracts of Housing Corporation-administered land, for first-home buyers, or in partnership with community housing organisations, such as Habitat for Humanity.
First-home buyers would be given the option of buying the land within 10 years, Mr Heatley said.
An audit of available land is under way and is expected to be completed by the end of this year.
While the greatest area of housing need was in Auckland, Wellington and Christchurch, suitable land would be assessed across the country.
The scheme would also provide a valuable boost for the construction sector, with home buyers required, as part of the lease agreement, to start building their first home within 12 months, Mr Heatley said.
Home buyers would have the right to buy land at its original capital value, plus a small percentage for each year they have lived in the house.
Mr Heatley said he supported the sale of state houses to tenants, and expected "hundreds, not thousands" of people to take up the offer, which could be available by the end of the year.
He was aware of people on high incomes living in state homes and rather than "chucking people out", the homes could be sold, with proceeds going towards building new state houses in high-need areas, such as South Auckland.
When asked if it was the right time to sell state houses to tenants given current market conditions, Mr Heatley said "the reality is we want people to buy their own home".
Rather than the traditional three-bedroom state home of yesteryear, smaller and larger homes were required, with the minister preferring building or leasing new state homes, rather than buying existing stock.
Older state houses on large sections may be redeveloped to accommodate larger families, with semi-detached homes the preferred option.
