UDIA welcomes expansion of Home Guarantee but demand:supply ratio still out of balance
The expanded Home Guarantee eligibility announced yesterday is a welcome decision by the Labor Government as part of its coordinated strategy on home ownership and affordability.
“The expansion of the eligibility criteria for the Home Guarantee Scheme will certainly help more Australians looking to get into the housing market,” said Maxwell Shifman, UDIA National President.
The changes, which take effect from1 July this year, will enable friends, siblings, and other family members to make joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee, as well as now also including Australians who have not owned a home for the last 10 years.
In addition, the Family Home Guarantee will be expanded from single natural or adoptive parents with dependents to eligible borrowers who are single legal guardians of children such as aunts, uncles, and grandparents.
In total, 35,000 places are available per year across the First Home Guarantee, 10,000 places per year to 30 June 2025 under the Regional First Home Buyer Guarantee, and 5,000 places per year to 30 June 2025 under the Family Home Guarantee.
“These enhancements help remove barriers to accessing housing for many Australians otherwise priced out, but they will work best when coordinated with supply boosting measures to keep downward pressure on prices.”
There is still substantial work to be done to address the imbalance on the supply side of the housing equation. UDIA National analysis shows that with greenfield and apartment prices rising, and with approvals dropping, the powerful impact of scarce housing supply, rising cost of living, interest rates and tighter financial lending, means any housing access innovations still need to be coordinated with expanded supply measures across the spectrum.
Immediate actions include including streamlining planning, boosting enabling infrastructure and expanding development ready land supply.
Critically, Government has recently taken necessary steps to level the playing field for Build to Rent projects, and expanded affordable and social housing which will bring more supply, however the pace of supply boosting measures across the housing spectrum still needs to grow to ensure at-market, rental, affordable and social housing are all delivering to take pressure off price increases.
“Expanding the eligibility criteria of the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, will help more Australians obtain a home of their own, and supply boosting measures will help ensure those homes are affordable,” said Mr Shifman.
UDIA National stands ready to work with Government to implement these new initiatives and coordinate supply boosting measures to build a robust, equitable and affordable housing market.
Deanna Lane | National Media & Communications Manager | 0416 295 898 | firstname.lastname@example.org