The news that the Crown has purchased five Northlake KiwiBuild homes after they failed to sell through the programme has made headlines around the country.

National's Judith Collins questioned Housing Minister Phil Twyford about the issue in Parliament during Question Time on Tuesday (April 2).

The sale means KiwiBuild will also have to pay for real estate marketing costs and upkeep while the houses are on the market, but Phil said it was “not a matter for concern that the government temporarily owns the homes”.

Waitaki MP Jacqui Dean said it was “totally irresponsible” that the government had “taken over the financial risk of the scheme as a way to get developers involved”.

The KiwiBuild underwrite guarantees a minimum price for the home if it fails to sell, effectively de-risking the project for the developer.

One of the five houses has since sold to a Kiwibuild buyer, a spokesperson told the Wanaka App.

“The remaining four continue to be marketed to eligible KiwiBuild buyers at the same prices and we expect sales to continue,” the spokesperson said. “The underwrite allows the developer to build knowing that they will be able to realise their investment and recycle that capital back into building more affordable homes.”

Another 211 homes Kiwibuild homes are due to be built at Northlake, and the spokesperson would not be drawn on whether the lack of sales had affected the feasibility of further builds. “The contract for Kiwibuild homes at Northlake has not been altered," he said.

Jacqui Dean criticised the scheme.

“It was foolish of this government to rush in and agree to underwrite this project, when they had no idea what the sales outcome might be and how dare they play fast and loose with taxpayers money,” she said.

The Queenstown Lakes average house price sits at $1.2 million; Kiwibuild homes start at $565,000.

PHOTO: Jacqui Dean