The federal government’s 5% home deposit scheme will make it more difficult for low-income Australians to buy their first home, according to new research that suggests a major rethink of the key housing affordability policy is needed.
The expansion of the measure in October coincided with a sharp acceleration in home values and raised concerns that the policy could prove self-defeating. Labor has repeatedly cited Treasury analysis suggesting a 0.5-0.6% rise to property prices over six years.
