The Albanese Government's First Home Buyers Scheme will add $55 billion to property prices over the next six years, according to ABS data analysed by the parliamentary library.
Labor has lifted borrowing limits and income caps under the scheme as of today - a move which, according to media reports, Treasury modelling expects will inflate house prices.
Newly compiled data from the Parliamentary Library shows a 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years. This amounts to an average of around $9 billion per year.
The Greens say Labor's deposit scheme will turbocharge the housing crisis by driving property prices up, locking out first home buyers or plunging them into deep debt.
As stated by Greens housing and homelessness spokesperson Senator Barbara Pocock:
"In the midst of a national housing crisis, this scheme will add billions of dollars to property prices. How is this a solution? Labor is turbocharging the housing crisis.
"We know this will drive up house prices and we know this will encourage people to buy houses they can't afford - it's reckless.
"Under the Labor's First Home Buyers Scheme, the Government is encouraging people to take out loans on homes they can't afford. Taking out a 95% mortgage when property prices are eight times the average household income doesn't create stability - it sets first-buyers up for financial hardship, while the banks take the profits.
"If Labor's goal is to make housing even more out of reach for everyday Aussies - it's certainly succeeded. This policy sounds good on paper but it'll only drive up house prices and plunge first-home buyers deeper into debt.
"Increasing housing demand without dealing with the acute housing supply issue in this country just means more expensive homes.
"The housing market is rigged for the wealthy. Until the government scraps the tax perks for wealthy property investors - the capital gains tax discount and negative gearing - and builds affordable homes, younger generations will be left on the sidelines."
Data:
- The current value of dwelling stock owned by households in Australia is $11,108 billion ($11.1 trillion).
- A 0.5% increase would be $55 billion, increasing the value to $11,164 billion, over 6 years.
- An average of around $9 billion per year (assuming a simple linear increase).
