The Help to Buy program offers up to 40% of a home’s value to eligible participants. It aims to make property ownership more achievable for those who are struggling to meet large deposits and mortgage repayments. While this appears to benefit first-time buyers, some analysts are concerned that the scheme could increase pressure on an already tight housing market due to strong demand and limited supply.
The federal government plans to assist 40,000 home buyers over four years through this shared ownership approach. While the government provides a portion of the purchase cost upfront, that share must be repaid by the buyer, usually when the property is sold. Similar models have been used at state level in the past, but this is the first national rollout of such scale. Analysts worry that increasing purchasing power in a restricted market may drive prices higher, making it even harder for others to enter the market.
Economists argue that although this support may help individuals purchase a home, it does not address the core issue – there are not enough homes available. With property listings remaining low and construction pacing behind demand, added competition often leads to higher prices. Some observers believe that despite its positive intentions, the plan could inflate property values, wiping out much of the affordability it is meant to provide.
This may offer short-term relief for some buyers, but without a meaningful increase in housing supply, rising demand could make future buying even more difficult.
