Charles Croucher:
In the meantime, the Reserve Bank boss has dealt Aussies a double blow. Michele Bullock signalling rates could be kept on hold for the rest of the year and warning government actions to address the housing crisis are unlikely to have any meaningful impact on supply within 2 years. To discuss, I’m joined by Housing Minister Clare O’Neil in Sydney.
Minister, good morning. Let’s start with the Reserve Bank. The Governor doesn’t think you can adequately boost supply in the next 2 years. You yourself have long said supply is key. So, how do we speed up construction?
Clare O’Neil:
Well, Charles, what we need to address this problem is a Commonwealth government in Canberra that is throwing absolutely everything we have at the housing crisis. And that’s what you’re seeing our government do. We’ve got a $43 billion agenda here that’s about building more homes, getting renters a better deal and getting more Australians into home ownership. Now, these policies have already had real impact. Just in our first term, a half a million homes were built around the country with more social and affordable housing funded by our government. We’ve got a million renters around the country that are benefiting from an almost 50 per cent increase in Commonwealth Rent Assistance and we’ve helped 180,000 young people get into their first home. As you know, today, 1st of October is a big day for first home buyers around the country, with big opportunities opening up for them. So, there’s a lot of work going on here, but I absolutely see housing is really tough for the country and that’s why we’re throwing everything at this.
Croucher:
Yeah, I do want to get to those new changes because they are significant, particularly for young people trying to get in the market. But there were figures this week pointing to that $10 billion future fund, which is supposed to and will eventually, we’re told, build 40,000 social and affordable rental homes by 2028. It only spent something like 13 and a half million last financial year. Can we guarantee that that’s going to increase in this year and the years to come?
O’Neil:
Yeah, well, it already has increased, Charles, and that reporting was focused on data which is out‑of‑date. More than $140 million has now been invested in housing through that fund. And this is a generational investment our government is making in building more social and affordable homes. Just to give your viewers some context, we’re building 55,000 new social and affordable homes around the country over a five‑year period. In the 9 years the Coalition were in office, they built just 373. You didn’t mishear me – 373. We’re building 55,000 over a 5 year period. So, that’s just one of the many things that our government is doing about the problems that Australians are facing with housing. We’ve recognised that people are really doing it tough on this front. That’s why we’re building more homes, getting renters a better deal and getting more Australians into home ownership.
Croucher:
All right, let’s get on to home ownership. As you mentioned there, help on the way for aspiring homeowners. They now only need 5 per cent of a property to get in without paying that mortgage lender’s insurance. Take us through who’s eligible.
O’Neil:
Well, we’re today slashing the time that it will take for first‑time buyers to get into the market. As of today, every single first‑time buyer around the country will be eligible to get into the market with just a 5 per cent deposit and with our government’s backing. So, to put it in practical terms, I’m in Sydney today, you know, young families in Sydney are often saving for 11 years or more to build that 20 per cent deposit. We’re going to bring that time frame back to 2 or 3 years. So, if you’re sitting at home, if you’re looking to get into the market, if you’re trying to get your kids into the market, this is the policy for you. Five per cent deposits for every single first‑time buyer around the country. It’s a really big day for homeownership.
Croucher:
Some of the data out today, saw, a half per cent growth in just the last month in house prices. Most economists assume that with the increased demand, prices will go up because of this new scheme. Is that just the price of doing business and getting into the market? Do you think Australians will still be better off because of this system?
O’Neil:
Yeah, look, Charles, we know that the real answer to housing affordability in our country is to build more homes. And that’s exactly what the government is doing. That $43 billion agenda I talked about, most of that money is actually going into making sure that we construct the housing Australians need. But I’m not going to look a generation of young people in the eye and tell them that we’re not going to do anything to help them while we build more houses for the country. Young people need our support right now and that’s exactly what they’re getting today.
Croucher:
It is a big change and a big job that you have there. Great to speak to you this morning, Minister.