Labor launches Help to Buy public consultation

The Albanese government has launched consultations for the Help to Buy Program Directions in order to educate the public on how the shared equity program can help them enter home ownership, Minister for Housing Julie Collins MP has announced.

Collins confirmed the program will sit alongside legislation and contain details of the scheme such as eligibility criteria and participant obligations.

The exposure draft Program Directions and accompanying explanatory statement are available on the Treasury website. The public consultation will close on 21 May 2024.

Collins stated: “Right across the country Help to Buy will be life-changing, bringing home ownership back into reach for thousands of Australians, particularly renters.

“We have already helped more than 110,000 people into home ownership and Help to Buy will mean even more Australians have this opportunity.

“The Liberals and Greens should stop standing in the way of Help to Buy and support it in the Senate.

“Our ambitious housing reform agenda is working across the board – more help for home buyers, more help for renters and more help for Australians needing a safe place for the night.”

Indeed, last week (19 April), the Senate economics committee recommended that the Senate pass the Help to Buy scheme bills.

Help to Buy was a pre-election promise from the Albanese government, with the scheme aiming to enable up to 40,000 eligible Australians to purchase a property with a minimum deposit of 2 per cent without paying lenders mortgage insurance (LMI).

According to Collins, the scheme will be the “first national shared equity scheme of its kind” while cutting housing costs by up to 40 per cent.

“This will be life-changing for thousands of Australians who have been locked out of the security and stability of home ownership,” Collins said.

“The government will support eligible home buyers with an equity contribution of up to 40 per cent for new homes and 30 per cent for existing homes.

“Help to Buy is one part of our government’s broad and ambitious housing agenda, backed by more than $25 billion in new housing investments over the next decade.”

The scheme has not been without its dissenters however who have raised concerns that it would increase house prices in a market that’s already facing supply issues.

[RELATED: Is Help to Buy just ‘shuffling deck chairs as the Titanic sinks’?]