[Greens-Media] First Home Buyers Grants Will Not Solve Western Australia's Housing Problems

[Bout, Marie (Sen S. Ludlam)]

First Home Buyers Grants Will Not Solve Western Australia's Housing
Problems

Greens Housing Spokesperson Senator Scott Ludlam says the government's
boost to first home owners' grants isn't solving the housing crisis, as
new figures show Western Australia having the second highest rate of
Mortgage defaults in Australia.

"According to Fitch Ratings Western Australians are amongst those
struggling the most to keep their homes. The first homebuyers grant
encourages people to start a mortgage, but where are the housing
affordability initiatives that help with mortgage stress."

 "Unfortunately the First Home Owners Grants increase demand in a sector
already experiencing a critical shortage of supply. They could be
inflationary and pushing house prices even further beyond the reach of
many Australians," said Senator Ludlam. 

Credit ratings agency Fitch Ratings reported yesterday that the mortgage
delinquency rate increased nationally, with Western Australia shifting
from best performing state in the country to the second worst, at just
over 2 percent. Senator Ludlam says a different approach is needed:

"The government has recently injected another one and a half billion
dollars into First Home Owner Grants. While this assists first home
owners with an initial deposit, today's data shows it's not making
mortgage repayments any more affordable."

"The Grants should be means-tested and focussed on encouraging people to
purchase homes that are genuinely affordable - homes they wouldn't have
been able to buy without assistance. The savings from this could be used
to provide increased housing solutions for Australia's homeless."  

Senator Ludlam has been critical of the Rudd government for failing to
effectively respond to homelessness during its first 12 months in office
and this morning was guest speaker at Homelessness Australia's Annual
General Meeting in Canberra. 

For more information or media enquiries please call Marie Bout on
0405399164.