Government announces first-home buyers plan

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PHOTO: Housing crisis

The government plans to help first-home buyers into the market, by increasing the caps for financial support, and extending the bright-line test to 10 years.

It has unveiled its long-awaited plan to tilt the balance towards first-time buyers and to turn down the heat in the market.

Prime Minister Jacinda Ardern said the plan is a package of both urgent and long-term measures to relieve pressure.

“The housing crisis is a problem decades in the making that will take time to turn around, but these measures will make a difference.

“There is no silver bullet, but combined all of these measures will start to make a difference,” she said.

From 1 April, the income cap to access First Home Grants and Loans will be lifted from $85,000 to $95,000 for single buyers, and from $130,000 to $150,000 for two or more buyers.

Regional price caps for accessing support have also lifted.

A Flourish data visualization

Housing Minister Megan Woods said the government is also expanding the rules so that more people will only need a 5 percent deposit before first home buyers can apply for support.