Remember when Nick Smith caused much hilarity by claiming that houses are more affordable now than they were under the last government?
Remember when he did it again?
Remember when MBIE seemed to be trying to hold back housing affordability data?
Today the other shoe dropped:
The Ministry for Business, Innovation and Employment ignored advice from the Reserve Bank over its new housing affordability measure, and made houses appear to be more affordable than they actually were.
Labour Party housing spokesperson Phil Twyford said it was extraordinary the ministry went ahead and launched the measure knowing it was based on a “fundamental error”.
“If you assume there is a 1 percent difference between the rate they should have used and the rate they actually used … on a $500,000 mortgage over a 25-year term that would add $3500 in payments to the bank every year.
“That would make it significantly less affordable and I think it shows this measure is ham-fisted actually.”
Nor does the measure take account of the skyrocketing deposit that you have to save as a percentage of skyrocketing prices – so it’s not much good in the real world anyway.
Government ministers have claimed the measure is proof housing is now more affordable than when National came to power – despite house prices surging over the last nine years.
There doesn’t appear to be any upper limit to the brazenness of National’s lies.