Under a deal with the federal government, Tasmania has made plans to build over 2000 homes across four cities that will be reserved for first-home buyers.
The federal government and state government of Tasmania have struck a deal to help the state build 4000 homes, with more than half of them set aside for first-home buyers.
The houses will be built across Hobart, Launceston, Devonport and Burnie. Picture: Getty
Tasmania will receive $165 million from the federal government, through $115 million in concessional loans and $50 million in grant funding.
This arrangement falls under Prime Minister Anthony Albanese’s promise heading into the 2025 election to help build 100,000 homes for first-home buyers, dedicating $10 billion to the effort.
Tasmania plans to centre the first-home buyer housing in the key cities of Hobart, Launceston, Devonport and Burnie.
The funding will also be used to deliver enabling infrastructure in Brighton, Sorell and Meander Valley.
Federal minister for housing Clare O’Neil said it was important that housing be made available to first-home buyers “with no competition from investors”.
“Thanks to this agreement we’ve reached with the Tasmanian Government, there will be thousands more Tasmanians getting the keys to their own home,” she said.
Tasmanian Minister for housing Kerry Vincent said that every one of the homes built thanks to this agreement would “make a difference” and called the partnership “a huge win for the entire state”.
“We welcome this investment by the Australian Government into Tasmania, and I look forward to thousands of extra homes being built in high growth areas, especially the 2,101 being built for first home buyers,” he said.
Tasmania changes building rules
The news follows on from another change in Tasmania that’s intended to increase housing supply across Australia’s southernmost state.
The state is working to amend its planning rules to increase the size of granny flats by up to 50%.
This will see the size of allowable backyard dwellings increase from 60 square metres (sqm) to 90 sqm.
The change will make it much more feasible to build a two-bedroom ancillary dwelling in Tasmanian backyards, increasing the type of housing that homeowners are able to offer to renters or members of their family.
“There is an appetite in the market for this type of medium-density build, and supersized granny flats really do meet that requirement,” said Mr Vincent.
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