The National Party has claimed the scheme isn’t working as it has only written 1774 loans since it was launched in 2003, when its target was 8000.
It is also claiming that it has been a waste of money as $1.8 million has been spent on marketing the scheme.
“Every one of the 1,774 families who have used the Welcome Home Loans would prove that it is not a failure,” Housing Minister Steve Maharey says. “The scheme has helped families who would otherwise be in rental accommodation to buy their own home.”
Maharey says besides the scheme the Government has a nationwide homeownership education programme, it is talking and working with councils on how to increase the supply of affordable housing, introducing the KiwiSaver scheme, and currently developing a new shared equity scheme.
He says the shared equity scheme is a way of ensuring that the price a person has to pay for a house initially will basically be halved, thereby enabling him or her to get into that house and, as the equity grows, to get a larger share.
Also the government was considering at a modified rent-to-buy programme for State house tenants that uses a share of capital gains over a rental period as a deposit on the property to assist in first-time home ownership.
The government is watching a similar scheme which is being run in Britian.
“Officials are currently developing proposals for a new shared equity scheme that would include State house market rent tenants amongst the prospective homeowners.”
