[Greens-Media] Boosting grant for new houses a recipe for more price rises, Greens warn

[Torre, Giovanni (Sen S. Ludlam)]

Boosting grant for new houses a recipe for more price rises, Greens warn
Australian Greens housing spokesperson Senator Scott Ludlam. 11 September 2012.

The Queensland Government has taken one step forward by removing the inflationary $7000 First Home Owner's Grant for existing homes but taken two back by more than doubling it for new homes, the Greens warned today.

Australian Greens housing spokesperson Senator Scott Ludlam said Premier Campbell Newman had it "half right" but would achieve nothing without proper reform.

"Removing the grant for pre-existing homes is a good step as it removes a factor that was pushing up house prices and doing nothing to enhance supply.  However, doubling the grant for new homes will continue to inflate housing prices while promoting urban sprawl.  What we need to see is zoning reform, and public housing and vacant property conversion programmes that increase supply in a sustainable way.


"The weight of evidence against the Grant is overwhelming.  When the then Labor Government introduced a first home owner program in the 1980s, prices jumped by almost 30 per cent, and the scheme was promptly withdrawn after two years.  The Howard Government re-introduced it in 2000, spiking prices by 16.5 per cent the following year.  Since then, house prices have trebled, with the only noticeable slowdown coming in the early stages of the global financial crisis, a slowdown reversed by the Rudd Government's First Home Owner Boost.  This precipitated a year-on-year price rise of 19 per cent.



"In Queensland alone more than two-and-a-half billion dollars has been spent on a grant scheme that pushes up the price of housing.  This extraordinary waste of money must come to an end.  The industry itself has rightly referred to this new plan as short term sugar hit.



"One third of Australian householders are renters.  The Newman Government slashed funding to the Queensland Tenancy Advice and Advocacy Services which provided much-needed assistance for more than 80,000 people each year in one of the country's most stretched rental markets.  The money spent on boosting the Grant could fund those services and much more.

"If the Queensland Government wants to promote affordable housing, it should axe the inflationary home grant completely; fund a Convert To Rent programme that makes currently unused properties available; support the National Rental Affordability Scheme; and building more social housing.  These measures would take a huge amount of financial pressure off Queenslanders."


Media contact:  Giovanni Torre - 0417 174 302