'Poverty trap': Labour's Kieran McAnulty explains benefits of state housing rent-to-buy scheme

Labour wants to help state tenants to get a foot on the property ladder.

It's proposing a rent-to-buy scheme, with Kainga Ora putting aside $100 rent a week, working up to a deposit.

The party would also lift the income cap for five percent deposits, to $300,000, making more buyers eligible.

Labour Housing spokesperson Kieran McAnulty says getting these renters out of the 'poverty trap' will benefit the whole country.

"The announcement today to expand the 5 percent deposit and also have a scheme to actually get Kainga Ora tenants out of state housing, out of the poverty trap and into home ownership, I think is something that will benefit the whole country." 

LISTEN ABOVE

• Labour announces rent-to-buy scheme for public housing tenants
• Chlöe Swarbrick leads National rival in tight Auckland Central poll