House price solutions 'will be ignored'

He said the optimal solution to affordability, increasing bank exposure to debt, a strong NZ dollar and a lack of accommodation for low-income families was a quick jump in house supply combined with a drop in the cost of building materials.

He says minimum deposit rules will just make it harder for first-home buyers and other lenders will crop up to get around rules on bank lending. He says construction inflation will continue to push up the dollar and the lack of affordable housing will push middle-income earners into traditionally low-income areas, and push the poorest families out.

The only solution, he says, is to:
- First initiate a large builder training programme targeting not just youth but low skilled migrants. “Yes, the migrant gates would need to be opened. Just the signalling of strong intention to boost builder numbers would make investors think twice about their capital gain assumptions."

- Second, ban councils from imposing any development fees and allow developers to install their own infrastructure.