The government is considering discontinuing first home grants and instead allocating more funds towards social housing, according to RNZ. Currently, the scheme offers grants of $5,000 for an existing home or $10,000 for a new-build to first-time buyers who earn less than $95,000 individually or $150,000 as a household.
Housing Minister Chris Bishop stated that the government is reviewing all housing support programs, but could not promise to keep the current level of support for first-time home buyers. Bishop mentioned that the government spends billions on housing support each year and is examining all programs to see how they can be more targeted and efficient.
However, New Zealand First’s Shane Jones hinted that the grants might be discontinued, stating that the matter would be addressed on Budget Day. When asked to confirm if the grants would be abolished, Jones declined to comment.
The opposition party, National, previously criticized the Labour government in 2021 for not providing enough grants. Labour’s housing spokesperson Kieran McAnulty called the potential scrapping of the grants a cynical move, as it would prevent some people from buying a home. He argued that the scheme, initially started by the National government and expanded by Labour, was beneficial and its discontinuation would be devastating for many first-time home buyers.
