South to get more state houses

State Houses in Brockville. Photo: ODT files

Housing pressures in the South will be eased by 105 new state homes, but mayors say the announcement will not eliminate the problem.

Yesterday, the Government announced locations around New Zealand for 6400 new public houses, to be built in the next four years.

Otago and Southland would receive 105 homes, which was broken down as 55 for Dunedin, 40 for Invercargill and 5 each for the Queenstown Lakes and Clutha Districts.

There are 153 people waiting for state houses in Dunedin and 1373 public housing tenancies in the city.

Housing and Urban Development Minister Phil Twyford said the plan would be part of the "biggest public housing programme in more than a decade".

The builds will be funded through $234.4million in operating funding from the most recent budget, $2.9billion from Housing New Zealand borrowing from third parties and a further $900million from its operations.

The national housing crisis hurt too many New Zealanders "from those locked out of the Kiwi dream of home ownership, to those left homeless and those suffering the health effects of poor-quality housing", Mr Twyford said.

"The single most important thing the Government can do to solve the housing crisis is to build more affordable homes, and the best way to tackle homelessness is to build more public housing."

Dunedin Mayor Dave Cull said the announcement was a "really good response" to Dunedin's housing pressures.

"Everything helps. We know we've got an impending tightening of availability in Dunedin, as well as concerns around the quality of our older stock, especially some rentals."

It would not be a "silver bullet" for the city's housing woes, but would address one section, he said.

Invercargill Mayor Tim Shadbolt said the Government was moving in the right direction, but the proposal was a "drop in the ocean".

"We're being punished for being so successful. If tourism keeps growing at the rate it's going, we will really need to be a bit more proactive towards these problems."

Presbyterian Support Otago chief executive Michael Parker said the organisation welcomed the announcement.

"Family Works continues to receive constant approaches from people looking for housing support. This averages at least one contact per day, so the demand and need continues to be high."

However, if the increase seen over the past two years continued, the new houses would not meet demand, he said.