Labour’s ‘Help to Buy’ housing policy crams distortion upon distortion

The Labor Party’s housing proposal restores the Commonwealth to the housing market, although the Coalition’s poor policy is already distorting the landscape.

(Image: Mitchell Squire/Private Media)

No matter what happens to housing policy in Australia, it seems homeowners always win. Still.

Labour’s ‘Help to Buy’ housing policy, which will allow 10,000 low- and middle-income applicants a year to buy homes, with the Commonwealth taking up to 30% equity in existing homes and 40% in new homes, will only add to the demand for housing.

Not significantly – 10,000 households is well under 10% of the number of first-time home buyers in 2021, and the policy is firmly targeted at the lower end of the market. The highest maximum cap will be in Sydney for $950,000. But it is introducing – or re-introducing – the federal government to the housing market, in a way not seen since Paul Keating sold the Commonwealth Bank of Australia (CBA) in the 1990s.

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