HomeStart boosting Bay ownership

Craig Foss says first-home buyers have received a welcome boost in Hawke's Bay. Photo / File

Tukituki National MP Craig Foss says first-home buyers are making the most of a Government boost in Hawke's Bay, but his Labour counterpart says "more needs to be done".

The HomeStart package came into effect on April 1 this year, replacing the KiwiSaver First Home Deposit Subsidy. It doubles the amount first-home buyers can receive, enabling them to apply for grants of up to $10,000 for the purchase of an existing home, and grants of up to $20,000 for a new build.

Mr Foss said yesterday there had been 88 HomeStart applications approved in Hawke's Bay since the package became available, resulting in the purchase of 50 properties so far. The approved applications were roughly split between the twin cities.

He believed the scheme was directly benefiting Hawke's Bay families.

"I advocated pretty strongly early on for [the package] to be extended to be accessible in areas beyond Auckland.

"The results on the ground in Hawke's Bay are pretty good," Mr Foss said.

"It shows more benefits to Hawke's Bay families. They're getting on the house ladder - there's nothing like home ownership."

But Labour's Tukituki spokeswoman, Anna Lorck, said the Government could be doing more to assist first-home buyers.

"There could be five times that amount," she said of the number of HomeStart applications approved in the region. "It's still difficult for families to get on to the property ladder, and more needs to be done. I think there's a lot more work Craig [Foss] could continue to do, and he should be working harder for Tukituki and for families."

Mr Foss encouraged potential first-home buyers to check their eligibility for the scheme.

Tremains Real Estate managing director Simon Tremain said the scheme had brought more buyers into the region's housing market.

"There's more first-home buyers in the market. It has raised the bracket for them, they're able to buy better properties in better areas," he said.

It was difficult to find new houses for less than $350,000 in Hawke's Bay, but the scheme enabled first-home buyers to secure larger loans from banks.

"It's been great for the market and it has definitely helped us get to where we are today."

TelferYoung property valuer and the chairman of the Hawke's Bay branch of the Property Institute of New Zealand, Trevor Kitchin, said the scheme had likely helped market activity.

"It probably has, there's probably a few factors - interest rates are obviously very low so affordability is a bit better than it was. There has been quite a bit of activity lately and first-home buyers and investors are both in the market."