An Independent Review of the 2019 ‘First Home Buyers’ Scheme finds it has hurt Prospective Home Owners!

Abstract

A scheme promoted by Scott Morrison at the 2019 election to help first home buyers into the property market has actually hurt prospective property owners and likely put upward pressure on prices, an independent review has found.

The statutory review of the National Housing Finance and Investment Corporation, released on Thursday, found the first home loan deposit scheme had also assisted potential buyers who were capable of getting into the market more than those who were genuinely struggling to get a home.

The review, headed by Flagstaff Partners senior adviser Chris Leptos, said the first home loan scheme was part of a scope of measures aimed at reducing housing affordability pressures across the country.

It found the scheme had most likely accelerated into the market people who would have been able to buy without support within one or two years.

But it had “supported relatively few people” who would have otherwise not been able to buy a home.

While the scheme had helped the 19,000 people who had accessed it in its first 18 months of operation, it had most likely hurt those unable to access it and put upward pressure on overall prices.