Almost 5k Aussies sign up for regional FHB scheme

The Regional First Home Buyer Guarantee opened in October 2022 offering up to 10,000 regional Australians a government guarantee of up to 15 per cent of the purchase price with a deposit of as little as 5 per cent, without needing to pay lenders’ mortgage insurance.

Minister for Housing Julie Collins said the launch of the program had been brought forward by three months to help more regional Australians into home ownership sooner.

“We know it’s been increasingly hard for Australians living in regional areas to save for a sufficient deposit,” Ms Collins said.

“Our targeted support is helping people get over that hurdle, getting more Australians into their own homes and helping ease the pressure on our regional rental markets.

“It’s just one part of our ambitious housing agenda to ensure that more Australians have a safe and affordable place to call home.”

The Regional First Home Buyer Guarantee has now helped:

• 1,915 Australians in Queensland
• 1,597 Australians in NSW
• 779 Australians in Victoria
• 230 Australians in Western Australia
• 113 Australians in South Australia
• 77 Australians in Tasmania
• 5 Australians in the Northern Territory

Housing shortfall expected to worsen: NHFIC

The data comes following the release of the National Housing Finance and Investment Corporation (NHFIC) State of the Nation’s Housing 2022–23 research report that warned an undersupply of housing is set to worsen as demand continues to outpace supply.

The report showed a slowdown in supply, together with increasing household formation, is expected to lead to a shortfall of around -106,300 dwellings (cumulative) over the five years to 2027 or -79,300 over the next 10 years.

The combination of a ‘stronger-than-anticipated’ population recovery, following the opening of the borders in early 2022, construction costs and delays, alongside the steep increase in interest rates is exacerbating housing affordability and an already tight rental market, the report revealed.

Ms Collins said the findings highlighted the importance of the government’s proposed Housing Australia Future Fund that will double the number of new social housing dwellings added to the stock each year for at least five years from 2024.

“This report is another reminder that too many Australians are struggling to secure safe and affordable housing,” Ms Collins said.

“The findings highlight the need to pass legislation currently before the Parliament to establish the $10 billion Housing Australia Future Fund.

“The Fund will help deliver 30,000 new social and affordable homes in its first five years. It will create a secure, ongoing pipeline of funding for social and affordable housing over the long term.”

[Related: Regional roundabout]