Few details on Labour's first-home policy

Labour is promising more help for first-home buyers through an equity share scheme but is providing few details.

Housing Minister Steve Maharey yesterday announced the plan, which calls for Housing New Zealand to provide a proportion of the equity needed for those on low incomes to buy a home. The purchaser would have to repay the contribution if the home was sold.

The scheme is based on one in Britain.

Mr Maharey said it worked best in markets where there was a strong demand for houses and high growth in property prices.

It would particularly benefit people living in higher-priced areas such as Auckland.

But a spokesman for the minister was unable yesterday to say how many people might be eligible.

There was also little information on the size of the contribution the Government had in mind, he said, although it could be up to 50 per cent.

The lack of detail and costings suggests the decision to unveil the scheme was primarily aimed at ongoing attempts to draw distinctions between Labour's policy direction and National's.