Housing: $323m for warmer homes

The building industry is set for a badly needed boost, with customers rushing to make their homes warmer from July.

Finance Minister Bill English said yesterday the Government would spend $323.3 million in the next four years to fit homes built before 2000 with insulation and clean heating. About $243m of that is new funding.

Homeowners will be eligible for a grant of up to $1800, with Community Service Card holders eligible for an additional $1200.

The funding would improve about 180,000 homes, but it is likely the programme would continue past the four-year timeframe.

About 850,000 homes built before 2000 have inadequate insulation and heating. Homeowners can apply to have an energy audit done from July, with assessors deciding how much work each house needs and homeowners then deciding what should be done.

The insulation package has been welcomed by the building industry, and has immediately led to more jobs being created, the Building Industry Federation said yesterday. Eleven new jobs were created in the insulation manufacturing sector as a result of the scheme, as well as 14 jobs in the installation sector.

"Further employment gains are probable in coming weeks," federation chief executive Bruce Kohn said.

Energy Minister Gerry Brownlee said the scheme had health and energy benefits.

"It's designed to reduce health risks from living in cold, damp homes and provide energy efficiency gains."

Wainuiomata couple Eric and Margaret Salt had their home fitted with ceiling and floor insulation, draught stoppers and moisture barriers last week, through EnergySmart's Healthy Homes project.

The couple, who both suffer from respiratory problems, said insulation should have been made compulsory years ago.

"With the log fire going, the whole house is about four or five degrees warmer and it seems to stay warm longer," Mr Salt said.

"We're snug as a bug."

- © Fairfax NZ News