Labour proposes rent-to-buy scheme for public housing tenants

Labour has announced a new rent-to-buy scheme designed to help public housing tenants purchase their homes. Under this policy, working tenants in Kāinga Ora homes and participating community housing properties could receive a $100 weekly credit towards a house deposit. These funds would be held in a trust account and could total $5,200 per year.

The policy allows tenants to buy the house they are renting at a price determined by an independent valuation. To support this, Labour intends to expand the First Home Loan scheme by raising the household income limit to $300,000. This expansion would allow more people to purchase a home with a deposit of only 5%.

Labour spokesperson Kieran McAnulty described the policy as "a game-changer and a life-changer". He noted that for a $700,000 home, a 5% deposit is $35,000, whereas a 20% deposit would be $140,000.

To fund construction, Labour plans to build three new public homes for every Kāinga Ora property sold through the scheme. This approach aims to ensure the number of Kāinga Ora homes does not decrease.

How it developed

• Tue 27 Oct, 2:41pmKieran McAnulty stated that approximately 1,100 tenants in the public housing system are currently paying market rent and may be capable of buying homes.

Where reports differ

• Report 4 notes the announcement occurred during a campaign reset following controversy involving a Labour candidate and gang members.

Compiled from reports by 1News, The Post, Otago Daily Times, NZ Herald and Stuff.