Federal budget includes first home buyer incentives, could push up already high property prices, economists warn
The budget contained a big cash splash but one key issue hurting many Australians was ignored, putting them at risk of dire situations.
Renters struggling to make ends meet are being put at risk of homelessness as residential property prices continue soaring across the nation.
The federal government on Tuesday night unveiled more incentives to help first home buyers, which economists warn could drive up already ballooning prices.
Affordable housing advocates Everybody’s Home says the government should have done more to support renters and older Australians at risk of homelessness.
“Unfortunately, the government has missed an opportunity to invest in the potential of our people,” spokeswoman Kate Colvin said.
“Escalating housing prices are pushing more and more people into homelessness, including women and children escaping family violence, young people who can’t stay at home, and older people on low incomes, especially women.”
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House prices have surged 11.8 per cent across Australia in the past 12 months, according to Ms Colvin.
She warned the property boom was pushing low and middle income households further behind, and left them exposed to rising rental costs.
“The economic benefit of social and affordable housing had been overlooked,” Ms Colvin said.
“Affordable and social housing provides the stability to find a job, and look after your health and your family.”
Treasurer Josh Frydenberg on Tuesday night announced the 5 per cent deposit scheme for 10,000 first home buyers purchasing a new dwelling would continue, with the federal government guaranteeing up to 15 per cent of the loan.
The First Home Super Saver will allow up to $50,000 in voluntary contributions, up from $30,000, for a first home deposit.
AMP Capital chief economist Shane Oliver said the measures were to be “commended” given they helped worthy groups who had been priced out of the market, but they came with risks.
“The danger with doing that, of course, is that it just helped pump the property market up further without solving the underlying problem … a lack of supply, relative to relatively strong demand,” Mr Oliver told ABC Radio National on Monday.
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Australian Council of Social Service chief executive Cassandra Goldie accused the government of turning its back on people who needed support amid a housing affordability crisis.
“That would have been a much better spend than the kinds of policies that the government came up with on that front,” Dr Goldie said.
“Regional rental prices have gone up by 20 per cent in some cases.
“It is a chronic problem.”
Labor leader Anthony Albanese pledged to build more social housing and repair existing housing in his budget reply speech last year.
“One of the fastest ways to lift economic growth and get tradies back on the tools is to invest in social housing,” Mr Albanese said.
The opposition is expected to announce further housing policies in coming weeks.
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