HIA managing director Graham Wolfe says that the extension of the first home loan despoit scheme and the new home guarantee scheme will make a real difference in the lives of thousands of Australians looking to achieve home ownership over the next three years.

“The deposit gap continues to be the biggest barrier to home ownership. The first home loan deposit scheme has clearly proven its value over the last 3 years, helping more than 30,000 households buy their first home,” Graham says.

“HIA is extremely pleased to see the government expand the scheme to address the ‘missing middle’ of home seekers – those people that have previously owned a home but have been out of the market, most likely renting, for more than five years in regional Australia.”

He adds that many people each year can find themselves back in the rental market after selling their home. The reasons vary but once in the rental market, saving a deposit to buying a new home can be just as big a hurdle as it is for first home buyers. Until now, there has been nothing available to help these people re-enter the housing market.

“The introduction of the Regional New Home Guarantee has the potential to help these home buyers but also to boost home building in the regions. Many people have chosen to move to regional areas over the last two years to build a new life, placing pressure on housing affordability in these areas. Supporting home building at the same time as supporting people re-enter the housing market can make a real difference,” Graham explains.

“Most Australians (77%) still believe owning your own home makes you more financially secure, with 37% of Australians believing it makes you significantly more financially secure. Not surprisingly, 85% of renters still aspire to become home owners.

“Clearly home ownership matters and HIA is pleased to see the government take up many of the recommendations from our pre-budget submission and federal election imperatives in this week’s Budget.”

He says that yesterday’s announcement that apprentice wage subsidies will be extended to people starting their training until 30 June 2022 will allow more people to start a career in the housing industry and ensure hundreds of thousands of apprentices already in training in the last 18 months remain supported.