Poll shows FHOG inflating prices

Staff Reporter Wednesday, 8 Jul 2009 1 minute read

An online poll conducted by Loan Market Group has found two-thirds of Australians believe the federal government’s increased first home owners grant has pushed up house prices.

Of the 633 respondents, one in five thought the grant had no effect on prices while 13 per cent said they thought property prices had fallen.

According to the poll, 35 per cent of respondents who thought the grant had inflated prices said it had only affected the lower end of the property market; 31 per cent said it would not stop them from buying a house.

More than 97,000 Australians have taken up the higher grant since it was introduced last October, statistics from the ABS revealed.

The grant will be pared back to $10,500 for established homes and $14,000 for new homes from October 1 before returning to $7,000 for both categories on January 1.

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