UDIA National made a submission to National Housing Finance and Investment Corporation (NHFIC) in relation to its Investment Mandate Amendment (First Home Loan Deposit Scheme) Direction 2019.
UDIA National’s position on the First Home Loan Deposit Scheme is that Scheme is a positive concept – and sits well alongside other initiatives including retention of negative gearing, funding for housing supply and demand analysis, and the revised loan serviceability requirements by APRA.
It sensibly recognises that the barriers to entry to housing markets are real, substantial and immediate – and supply-based measures (such as planning reform to boost supply) will take time to give effect to improved affordability.
However, it will need to be properly designed to give effect to objectives including assisting more homebuyers into the market, improving affordability and supporting housing supply.
UDIA National is particularly concerned by provisions in the Mandate that will have the effect of steering participants towards established houses and limit the capacity of the Scheme to motivate the supply of new housing stock (especially “off the plan” stock which is needed to stimulate a consistent and required level of supply).