Budget measures 'fail to help' first home buyers

Wednesday, 9 May 2012

Provisions for first home buyers in the Federal Budget were somewhat limited, one organisation has indicated.

The Residential Development Council (RDC) explained that efforts need to be made to improve housing affordability in order to help more people get on the property ladder.

RDC executive director Caryn Kakas said that the government needs to "stop behaving like an absent parent".

"It cannot choose to stump up child support payments on a whim once in a blue moon. Funding for roofs over families heads must be paid every month and every year on year," she commented.

The government therefore needs to implement a long-term housing strategy to make sure enough affordable homes are available to all Australians.

Data from QBE Lenders Mortgage Insurance recently showed that purchasing intentions among first home buyers are currently strong, with a quarter of people seeking to get on the property ladder.

Of this amount, 18 per cent were first-time buyers, marking a three per cent rise from the same period of last year.

Meanwhile, there has also been an increase in the number of purchasers using a guarantor when applying for a home loan.