The Government has been forced to "temporarily" buy five Wanaka KiwiBuild homes after they failed to sell in a ballot.
National's Judith Collins questioned Housing Minister Phil Twyford about the issue in Parliament during question time today.
"How many unsold KiwiBuild houses have been bought by the Crown as part of the underwrite and in what developments have these purchases occurred?" Ms Collins asked.
"I'm advised that the Ministry for Housing and Urban Development has purchased five homes at Northlake in accordance with the terms of the contract," Mr Twyford replied.
Mr Twyford also admitted that KiwiBuild will have to pick up the tab for new real estate marketing costs as they try and sell the remaining properties to the public but said it is "not a matter for concern that the Government temporarily owns the homes."
However, Mr Twyford says the projected net cost is zero after funds have been recycled through the underwrite scheme where the Government shares pre-sale risk with developers.
Six of the KiwiBuild Northlake properties have been sold and a further 200 KiwiBuild homes are planned for the Wanaka area over the next three years.
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