The Property Council of Australia has endorsed the Federal Government’s decision to extend house price caps within the Home Guarantee Scheme, helping future homeowners bridge the deposit gap.
The Morrison Government claims that if re-elected the current price cap under the Home Guarantee Scheme will be increased by $100,000. The increase accounts for the 50,000 place per year expansion of the Home Guarantee Scheme, particularly in regional areas such as Newcastle, Geelong and the Sunshine Coast, where the new Regional Home Guarantee is open to non-first homebuyers. There are substantial ‘Rest of State’ state cap increases around the country, ranging from $50,000 to $150,000.
Property Council Chief Executive Ken Morrison says the decision will help many more individuals and families bridge the deposit gap and purchase their first home.
“Bridging the deposit gap is a key challenge for aspiring homeowners and the Home Guarantee Scheme has been a well-designed program which has helped eligible home buyers get into the market,” he says.
Morrison says the Government’s own official forecasts indicate housing supply is set to decline markedly in coming years, with the National Housing Finance and Investment Corporation showing that Australia will be 163,400 homes short between 2025 and 2032.
“Australia is set to experience a housing supply crunch, falling by around 35 per cent right at the time that our population resumes its normal growth trajectory,” he says.
“Unless Australia is able to turn this supply deficit around, affordability pressures will remain acute.
“We again call on the Federal Government and Opposition to commit to working in partnership with state and territory governments to address housing supply blockages to support affordability outcomes.”
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