Housing policies spark mixed reactions

A re-elected Labor government would guarantee a portion of a first homebuyer’s mortgage, and buyers would not pay lender’s mortgage insurance under the scheme.

Mr Albanese also announced a plan to invest $10 billion to build up to 100,000 homes that would be reserved for first homebuyers.

The same day, Opposition leader Peter Dutton announced a plan allowing first homebuyers to claim a tax deduction on mortgage interest payments for new-build homes.

Mr Dutton said an elected Coalition government would also provide a boost to the Home Guarantee Scheme, which includes the Regional First Home Buyer Guarantee.

RMIT University social housing policy expert Liam Davies said policies from both parties wouldn’t necessarily make housing cheaper.

“But they do make it easier for middle income earners to become first home buyers, through greater access to finance,” he said.

“There's nothing necessarily wrong with helping people to access home ownership while not dealing with affordability, as long as you've got other mechanisms to help people at different income levels.”

Mr Davies said low-income earners would still struggle with home deposits, while high-income earners would not be eligible for the schemes.

The policies also only address accessibility for the first person to buy a property, which Mr Davies said meant a house would become ‘full price’ once listed for sale again.

Community Housing Industry Association chief executive Wendy Hayhurst welcomed Mr Albanese’s announcement on building up to 100,000 homes for first-time buyers.

“We are particularly encouraged by the government's explicit commitment that these first home buyer developments will unlock additional housing supply, including much-needed social and affordable rental homes,” she said.

“This is a critical aspect of the policy that will help address housing needs across the spectrum.”

Master Builders Australia chief executive Denita Wawn shared the enthusiasm for building the new homes, but said more skilled workers would be needed to make them.

“From apprentices on the tools to planners in council offices, workforce shortages are putting a handbrake on housing delivery,” she said.

“Supporting first home buyers is only meaningful if we’re also making it easier to build the homes they want to live in.”

Ms Wawn called for a co-ordinated workforce plan with investment in training to deliver the proposed target from the federal government.

Everybody’s Home, a national campaign to fix the housing crisis, called on both major parties to present more ambitious policies.

Spokesperson Maiy Azize said the election promises fall short of what’s needed to fix the crisis, and could end up worsening it.

“The Coalition’s proposal to allow mortgage payments to be tax-deductible for first home buyers is a form of negative gearing for non-investors,” she said.

“That will give more help to people on high incomes, and could push home prices even higher.”

Similarly, Ms Azize said Labor’s home deposit support proposal for first home buyers would also add to demand.

While Ms Azize said Mr Albanese’s policy to build 100,000 new homes for first home buyers was a good step, there was still a greater need for social housing.

“We have a social housing shortfall of 640,000 homes in this country, and it’s growing,” she said.

“Australia doesn’t just need new homes, we need homes that people can actually afford.”