Prospective first-home buyers hoping for help through a government-run shared equity scheme will have to wait a little longer.
Housing Minister Chris Carter today said $1.4 million had been allocated in the budget for work on the potential design of a such a scheme, but a pilot would
not be funded until at least next year.
Mr Carter has said the most likely location for a pilot scheme was Auckland and could involve the Government paying for a 25 per cent or 30 per cent stake in a house.
That would effectively reduce the purchase price of a $400,000 house to about $300,000.
If the house was sold, the Government would take back its percentage share. The scheme is expected to be aimed at the lowest quartile of the housing market.
Mr Carter today said the Government was keen to explore how much demand there was for a shared equity scheme.
If the scheme flew, it would be introduced as part of a suite a new measures including a possible Housing Affordability Bill.
"Shared equity will also be introduced at the same time as the Government seeks to increase the number of houses in the price bracket affordable to first home buyers."
Mr Carter also today announced $43.6 million over four years for other housing initiatives.
That included $23.8 million to extend the life of the Healthy Housing programme and extend it into the Wellington region for the first time.
The programme targets overcrowded households and assists them into more appropriate housing.
The Housing Innovation Fund, which provides government assistance to local authorities and community groups to develop affordable housing, would also receive a boost of $19.8 million.
- NZPA
