 Federal opposition says no to extending increase
Opposition housing spokesman Scott Morrison said red tape and government charges surrounding housing development must be looked at in a bid to cure the massive undersupply of housing. Mr Morrison believed that extending the increae on the first home buyer grants will only make the shortfall in housing worse, and suggests that exorbitant State and local government charges associated with new housing development be cut and more land released.
While first homebuyers are impressed with the increase, with the number of new houses purchased by first homebuyers jumping by almost 10 per cent in November, Mr Morrison does not believe that extending that increase past June 30 is the solution for the housing markets.
However Mortgage and Finance Association CEO Phil Naylor says the increase to the grant has boosted sales. "First time buyers are vital to the health of the housing market so the continuation of incentives to encourage them should be carefully considered,” Mortgage and Finance Association CEO Phil Naylor said.
The number of new houses purchased by first homebuyers increased by nearly 10 per cent from October to November, as lower rates and a boost to the first homebuyer grants encouraged them into the market. Purchases non-first homebuyers fell by more than 3000 in the same period.
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