New figures from Housing Australia reveal how many Tasmanians have taken advantage of the government’s 5 per cent deposit schemes.
Since the schemes were first implemented in 2020, 4300 Tasmanians have signed up to use the federal government’s support programs.
Across Australia, 300,300 people have used schemes to access the market, led by the largest states New South Wales and Victoria.
Claremont is among the Hobart suburbs with the highest participation level in the government’s deposit schemes. Picture: Eddie Safarik
Housing Australia chief executive Scott Langford said this represents a significant milestone for the deposit scheme.
“Working closely with participating lenders, the Housing Australia team has successfully scaled the scheme from 10,000 places in its first year in 2020, to supporting more than 300,000 Australians today to take this important step towards the security of homeownership,” he said.
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Housing Australia chief executive Scott Langford
The statistics show Tasmania’s typical first-home buyer is a couple earning $139,000 per year and buying a home worth $478,000.
There have been just 80 Tasmanian single parents who have used the Family Home Guarantee, which can connect them with a home for a deposit as low as 2 per cent.
And only 100 of the 4300 total scheme users have built new residences with the home loan deposit program’s assistance since 2020.
The highest number of guarantees issued were in the 7310 postcode, which includes Devonport, East Devonport, Ambleside and Spreyton.
Burnie and its surrounding suburbs in the 7320 postcode had the next highest portion of scheme use.
In the south of the state, 7011 was the busiest area for this type of homebuyer, including Claremont, Austins Ferry, Berriedale and Chigwell.
The median price in Austins Ferry has grown quickly.
The 5 per cent deposit scheme received a major boost last October when the federal government raised purchase price thresholds in Hobart from $600,000 to $700,000 and in regional areas from $450,000 to $550,000.
While housing support schemes are not the only factor in a market’s movements, in the six months since October, PropTrack figures show Claremont’s median house price has grown by $33,000; Austins Ferry is up $86,550; Berriedale grew by $15,000; and Chigwell’s median increased by $81,000.
In this time frame, greater Hobart added $26,000 to its median house price.
PropTrack senior economist Anne Flaherty said that while helping so many Australians into homeownership was positive, the scheme wasn’t a good long-term solution.
“A scheme like this doesn’t do anything to increase housing supply,” Ms Flaherty said.
“It’s a demand-side policy that pushes up prices, and we have seen that.”
REA Group economist Anne Flaherty.
In recent years, with building costs surging, Ms Flaherty noted that even with lower deposit requirements, many first-home buyers would have struggled to find affordable options for new builds.
“So it’s absolutely critical that the government needs to do everything it can to remove barriers to creating new housing, particularly at affordable price points,” Ms Flaherty said.
“These kinds of demand-side policies are never going to be enough. We know that this policy has already kicked off higher price growth than would otherwise be seen.”
Mortgage Choice broker Christopher Ladley said while almost every first-home buyer he worked with now used the scheme, a lot of them still weren’t aware of it until they spoke with a broker.
“We talk regularly to people who assume they can’t do it (buy a home), and often we point out to them that they can do it and in some cases it brings them forward a few years,” Mr Ladley said.
With reporting by Nathan Mawby
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