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.”
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