The Housing Accord signed between local councils and the government this week is only part of the affordable housing solution, says Tauranga Labour candidate Rachael Jones.

'We can build all the houses we like in Tauranga, but if people can't afford to buy them then we have not fixed the problem,” says Rachael.

Housing Minister Nick Smith and Tauranga City Council Mayor Stuart Crosby sign the Housing Accord.

The accord signed by Housing Minister Nick Smith and the Tauranga and Western Bay of Plenty mayors is looking at building an additional 1175 houses in the region in the next two years.

'While it's good to see that the government is finally addressing the issue of supply of affordable housing, it has still done nothing about the demand side of the equation.”

Labour's polices address both supply and demand issues, says Rachael. Labour will build 100,000 affordable homes over 10 years around New Zealand, including some in Tauranga.

'But we will also address the problems of demand,” says Rachael.

'The rate of home ownership is steadily falling in New Zealand. At the moment, the lack of a capital gains tax makes investment in housing an attractive option. When wealthy investors buy the houses, ordinary kiwis struggle to enter the market.

'Low wages and high house prices also make home ownership an impossible dream for many.”

Labour has a suite of policies like introducing a capital gains tax on investment properties and preventing sales to non-residents – that not only address housing issues but also address economic development, job creation, and lifting wages.

National's Bay of Plenty candidate, Todd Muller, says the key to improving housing affordability in the Bay of Plenty is land supply.

The new Accords will enable an additional 175 homes in the Western Bay of Plenty to be built over the next two years by freeing up the supply of land.

The current house building rate is insufficient to match population growth. The proportion of average income required to service an 80 per cent mortgage is 63 per cent and well above the affordability goal of 50 per cent, says Todd.

The Housing Accord sets a target of increasing the number of building consents issued in the district from 200 per year to 325 in the first year and 350 in the second, providing for a net total of 175 extra houses, says Todd.

The Accords are expected to be ratified but the councils next week to take immediate effect.

The Councils will then identify areas to recommend to the Government to be designated as Special Housing Areas.

'This will make a big difference to people living here in The Bay of Plenty,” says Todd.

'From those wanting to get into the market to those who are already home owners, this announcement will see huge benefits for our families and communities.

'Owning a home is part of the fabric of our society and for too long it has been becoming a distant dream. Now it can become a reality for more people thanks to these measures.”

Read more about the Housing Accords here.