In its pre-budget submission to the federal government, the Property Council of Australia has called for new low-deposit home loans to assist first home buyers (FHBs) who are looking to break into the market.
The council recommended that low-deposit home loans, which mirror Western Australia’s Keystart program’s loan offerings, be introduced nationally.
Under the WA Keystart program, first home buyers pay deposits as low as 2 per cent for a property purchase in Perth’s metropolitan area.
The industry body urged the federal government to propose the policy in the upcoming budget to help initiate cooperation between Australia’s states and territories that will lead to policy change.
The Property Council also called for the establishment of a “National Housing Supply Council” or an equivalent body that would receive minimum funding of $2.5 million per annum.
Further, the government was urged to “identify more land disposal opportunities” to boost housing supply and implement a “build to rent asset clause”.
According to the body, pensioners should also be encouraged to downsize by “quarantining a portion of surplus cash from the pension eligibility test” in order to free up housing for FHBs.
Moreover, the Property Council believes that the federal government should incentivise planning reform to “make housing cheaper to produce” by lowering compliance costs.
Despite recent calls to scrap negative gearing, the Property Council noted that it supports the federal government’s decision to retain the existing arrangement.
[Related: Sydney drags down national home values]