More New Zealanders will be helped into home ownership with today’s launch of the Government’s Progressive Home Ownership scheme, Housing Minister Megan Woods said.
“Under-investment in housing and infrastructure in the past has made the aspiration of home ownership impossible for too many families,” Megan Woods said.
“I’m delighted the Government is once again delivering solutions to enable more families to own their own homes and secure their futures.”
The first phase of the $400 million fund has signed up providers in Auckland and Queenstown to support the first 100 low to median income families who are struggling to pull together a deposit, or pay a mortgage, into home ownership.
Megan Woods named the Housing Foundation in Auckland and Queenstown Lakes Community Housing Trust as the first providers who will sign up households for access to the scheme. More phase one providers in other centres will be announced soon.
“The fund will focus on areas where housing affordability is most severe, with a strong preference for new houses to build supply,” Megan Woods said.
“It will help up to 4,000 families who could not otherwise afford home ownership. We expect to see the first group of families in their own homes by November this year.”
The fund has a priority to support:
- locations with severe housing affordability,
- households unable to otherwise buy, and
- Māori, Pacific people, and families with children.
The fund will scale up funding for organisations already providing PHO schemes with wraparound support services, such as budgeting advice. As part of this approach, there will be a dedicated iwi and Māori pathway, with a specific focus on better housing outcomes for Māori.
The fund also includes an initiative through Kāinga Ora for households with an annual income of under $130,000 to receive shared ownership support directly from the Government.
The Progressive Home Ownership fund is part of the Green Party and Labour’s Confidence and Supply Agreement.
“We know that high rents make saving for a deposit almost impossible for many families,” Green Party Co-leader and housing spokesperson Marama Davidson said.
“This fund means more low income families who have been locked out of the housing market will finally have a chance at owning their own home. We’re proud to be part of a Government working to ensure everyone has the home they deserve,” Marama Davidson said.
