HomeStart delivering for first home buyers

The number of KiwiSaver HomeStart grants for first home buyers has doubled in the second quarterly report published by Housing New Zealand, Building and Housing Minister Dr Nick Smith announced today. "HomeStart is surging ahead as young families realise the opportunity for significant grants from the Government for buying their first home. I am particularly encouraged by the doubling in the number of grants approved - from 2011 between April and June this year, to 4261 between July and September. The 287 Welcome Home Loans issued for this latest quarter is also a record and shows how this programme, combined with HomeStart, is assisting families into home ownership," Dr Smith says. The HomeStart scheme came into effect 1 April and replaced the KiwiSaver First Home Deposit Subsidy. It provides grants of up to $10,000 towards the deposit for the purchase of an existing home, and grants of up to $20,000 for a newly-built home. Almost 6300 HomeStart grants were approved for first home buyers in the six months to 30 September. "Today’s figures confirm we are on track to meet our target of assisting 90,000 people over the next five years. HomeStart is the most generous programme for first home buyers in a generation, and the combination of KiwiSaver and HomeStart, alongside the Welcome Home Loans scheme - which allows only a 10 per deposit - is making home ownership a reality for Kiwis for whom owning their own home may otherwise be out of reach. The report released today also covers other home ownership assistance products including the Welcome Home Loan scheme, which was also revised on 1 April and resulted in 572 new approvals this quarter. The two schemes that help enable the purchase of state houses, the Tenant Home Ownership scheme and the FirstHome scheme, have also assisted 439 families in owning their own home since they were introduced. "HomeStart is part of a wider programme of work the Government has underway to help more people into owning their own home. We are freeing up more land faster through the eight Housing Accords we have agreed with local councils across the country. We have initiatives in place to constrain building materials costs, rein in development contributions, cut compliance costs and invest in improved sector productivity," Dr Smith says. "There are also new tax measures that came into effect on 1 October ensuring residential investors pay their fair share of tax, and the Reserve Bank’s new LVR rules on investors came into effect last week. The next step is the second phase of reforms to the Resource Management Act, which will address the long-term issues affecting housing supply and affordability. This Government remain committed to supporting more New Zealand into their own home."