Housing New Zealand says poor uptake of a loan scheme aimed at making housing more affordable was due to a change of government and focus.
Housing NZ senior communications adviser Michelle Williams told The New Zealand Herald the Labour shared equity scheme had not been promoted by the new National Government.
Figures out yesterday showed only $1.6 million of a budgeted $18.4m had been taken up. The scheme ends in July.
Under the two-year pilot people earning $85,000 could get 5 percent to 30 percent in a HNZ interest free loan towards buying or building their first home in Auckland, Wellington, Nelson, Christchurch or Queenstown.
"This Government has a different focus in terms of home ownership," Ms Williams said.
Initially 700 loans were expected to be taken up.
"This has not been the case due to a change of government and subsequently change in focus. Coupled with no promotion and low awareness of product, demand has been very low," she said.
Westpac chief economist Brendan O'Donovan told the newspaper changes to bank lending policies, such as no longer offering loans for 90 percent of the home's value, may have had an impact.
