Government decision to axe first home buyers’ grants criticized by First Home Buyers Club director.
The Government’s decision to scrap first home buyers’ grants has sparked outrage among those hoping to purchase their first house, with many feeling that their dream of homeownership is slipping further out of reach.
First Home Buyers Club director Lesley Harris described the move as “the final nail in the coffin” for aspiring homeowners. Housing Minister Chris Bishop announced that the funds previously allocated for grants would now be redirected to provide 1500 new social housing places through external organizations, rather than Kāinga Ora.
While existing applications will be honored, no new grants will be accepted moving forward. Harris expressed her disappointment, stating that the decision would make the already challenging journey to homeownership even tougher for many Kiwis.
The cut in grants comes as part of a broader trend of government austerity measures, with the Finance Minister hinting at more cuts to come in future budgets. Despite this setback, programs like the First Home Loan scheme and the ability to use KiwiSaver funds for house deposits will remain in place.
Speaking on the impact of the decision, Harris highlighted the additional financial burden it would place on first home buyers, potentially delaying their homeownership aspirations by years. Labour MP Kieran McAnulty echoed these sentiments, emphasizing that the move represents a broken promise and a setback for many New Zealanders.
In defense of the decision, Housing Minister Chris Bishop argued that the reallocation of funds towards social housing was a necessary step to address the growing demand for affordable housing. However, opposition leader Chris Hipkins criticized the move, accusing the government of favoring property investors over aspiring homeowners.
As the debate rages on, the future of homeownership for many first-time buyers remains uncertain, with the government’s decision casting a shadow over their prospects of entering the property market.
