Federal Labor has promised to help ease the burden of skyrocketing house prices in Australia's regions by creating a standalone regional first home buyers support scheme, if it wins the next election.
Housing affordability has been described as a national-level crisis by welfare and property groups around the country in the lead-up to the federal election, expected in May.
Opposition Leader Anthony Albanese said every region in Australia would benefit from the scheme.
"What it is aimed at is enabling young people – but others as well who have been saving for years to try to get into home ownership – to access that home ownership," he said.
Labor has pledged $12 million for the scheme that will allow first home buyers in the regions to get into a house with a deposit of 5 per cent without the need to pay lenders mortgage insurance.
"That could save up to $32,000 in mortgage insurance," Mr Albanese said.
Conditions and caps
There are conditions. The scheme only applies to home ownership not investments, there are income thresholds of $125,000 for individuals and $200,000 for couples, and people need to live in the regions.
The price of the first home would be capped at $800,000 in the Illawarra, Central Coast and Newcastle.
It would be set at $600,000 in other parts of regional NSW and the Gold and Sunshine Coasts in Queensland.
In Geelong the cap would be $700,000, while it would sit at $500,000 in other parts of regional Victoria and the Northern Territory.
For other parts of regional Queensland, Western Australian, Tasmania and South Australia, the cap would be set under $450,000.
Shadow Housing Minister Jason Clare said the provisions would make a difference.
He said while house prices had increased by 21 per cent in capital cities, they had increased 26 per cent in regional areas.
"This means regional Aussies need more help to buy a home in regional Australia.
"This policy is about making sure that no one is held back, no Australian living in the regions is held back from buying their first home."
The government already has the first home loan deposit scheme that helps 10,000 people – about 7,000 in metro areas and 3,000 in the regions.
"A standalone scheme for regional Australia triples the amount of help we can provide," Mr Clare said.
In an acknowledgement of rising prices, Mr Clare said Labor would review the scheme's price caps every six months.
Mr Clare also recognised that supply remained an issue, but said Labor would work with state governments to release more land to develop homes.
The Opposition made the announcement at the Southern Youth Family Services Centre in Warilla in the federal seat of Whitlam, held by Stephen Jones.
Home ownership 'seems unattainable'
Centre manager Narelle Clay said the local workforce was depleted and one of the key reasons was because housing was too expensive.
"Aged care, community services, hospitality, all those sorts of industries focused on casual workforce, we need those people," she said.
Mother of four Jacqueline Rowland works for the centre and said her family was struggling to find accommodation.
Ms Rowland and her husband work but were forced out of their rental when the price increased, and they are currently living with her father-in-law.
"It is hard, and it just seems to be unattainable to be able to move out and enter home ownership."
