The Property Council has welcomed the Coalition's announcement of targeted support for first home buyers through its First Home Loan Deposit Scheme.
"This is a smart proposal which helps first home buyers and provides some confidence for the housing construction sector," said Ken Morrison, Chief Executive of the Property Council.
"It will deliver some welcome assistance for aspiring first home buyers who have been confronted by the ever-increasing size of the deposit required to buy a home as the market has risen in recent years," Mr Morrison said.
"Notwithstanding the current downturn, housing prices have risen much faster than average incomes, making it an increasingly tough challenge to save for a deposit especially for first home buyers.
"This isn't a hand-out but a hand-up for first home buyers. They will still be required to be approved for loans and be able to repay them, but it should make it easier for first home buyers to take their first step towards home ownership by getting over that big deposit hurdle," Mr Morrison said.
Mr Morrison said that with the appropriate controls and means testing in place, this scheme should enable more first home buyers to engage in the market without adversely impacting on prices.
"It will also potentially be an additional stimulus for new housing construction which is one of the big engines of the economy and which has been looking at a significant downturn in activity.
"This scheme will help drive new housing projects once the current construction pipeline dries up, supporting jobs and housing supply," Mr Morrison said.
The Property Council looks forward to working with the Coalition should it win next weekend's election on the implementation of its proposal.
