MBV welcomes expansion to Home Guarantee Scheme

Master Builders Victoria (MBV) has welcomed the federal government’s announcement that the government will be expanding its First Home Guarantee Scheme to help thousands more Victorians enter the property market.

Soaring property prices have become a pressing issue for many Victorians, with many homebuyers unable to afford a home.

The First Home Guarantee Scheme ensures that part of an eligible buyer’s home loan is guaranteed by the government, which helps people buy a home quicker with a deposit as low as two per cent.

Under the expanded scheme, the government will make 35,000 guarantees each year – up from the current 10,000 – from July 1, 2022, to support eligible first-time buyers purchasing a new or existing home.

Another 10,000 places will be guaranteed each year from October 1, 2022, to June 30, 2025, under a new Regional Home Guarantee to support eligible homebuyers, including non-first home buyers and permanent residents, to purchase or construct a new home in regional areas.
Finally, 5,000 guarantees will be offered each year from July 1, 2022, to June 30, 2025, to expand the Family Home Guarantee to help single parents with children buy their first home.

MBV CEO Rebecca Casson said that the scheme’s extension was a further step in addressing housing affordability.

“The expansion of the federal government’s Home Guarantee Scheme will ensure the pipeline of economic activity continues and many more Victorians can enter the property market,” she said.

“The flipside of the housing boom has been major increases in demand and delays for key materials like timber and steel.

“The supply chain challenges have created understandable frustrations for both clients and builders with suppliers.”

Ms Casson said the potential downside to the current delays was the inevitable increase in costs of materials and the ensuing impact on housing affordability.

MBV is also asking Victorians to be kind and patient with builders and tradespeople, especially as everyone is trying their best in some exceptionally unique and challenging circumstances.

Meanwhile, Ms Casson welcomed the Commonwealth Government’s $365.3 million investment to support an extra 35,000 apprentices and trainees get into work.

“MBV supports getting more people into the building and construction industry, especially in light of current skills shortages, including bricklayers, carpenters, and concreters,” Ms Casson said.

“MBV welcomes the new Australian Apprenticeships Incentive Scheme from 1 July 2022, which will support employers and apprentices in priority occupations such as bricklayers, cabinet makers, carpenters, wall and floor tilers and roof plumbers.

“MBV also welcomes enrolments for the Boosting Apprentice Commencement wage subsidy being extended.”

Ms Casson said that building and construction has always been a male-dominated industry, but that needs to change if our industry reduces skills shortages and has a thriving and sustainable future.