Homebuilder Extension Safeguards Homeowners And Housing Affordability Says UDIA
Today’s announcement by the Federal Government to extend Homebuilder by two years is a welcome action that will ensure existing purchasers are not forced to default on construction contracts on projects impacted by pandemic induced delays.
“Without this decision, ordinary Australians, through no fault of their own, were in danger of losing not only their Homebuilder grant but also their home deposits, which have taken them years to save – putting them in a worse situation than before the pandemic,” said Maxwell Shifman, UDIA National President.
Homebuilder provided up to $25,000 in grants to hardworking Australians towards the construction of new homes and renovations. It was the only way for many Australians to get into homeownership, and many housing projects relied on Homebuilder supported purchasers to satisfy pre-sale requirements for construction loans.
Following today’s announcement, purchasers who were eligible under Homebuilder now have two further years to see their homes completed and obtain the grant. This extension will ensure Australians will not be negatively impacted financially, keeping their family home ownership aspirations alive.
The industry now has the breathing space it needs to finish Homebuilder projects, following supply chain delays, COVID 19 shutdowns, and construction company failures that pushed timelines past the earlier completion deadline for Homebuilder,” said Mr Shifman.
The extension to Homebuilder does not involve any additional expense to Government, it simply recognises that the challenges experienced by the construction industry, have been outside anyone’s control.
UDIA applauds the Government for listening to the concerns of its members in the development and construction industry, and taking the necessary steps to prevent a cascade of purchaser defaults. We will continue to work with Government to ensure Homebuilder delivers on its original promise of homeownership for ordinary Australians,” said Max Shifman.
Oiginal Source: UDIA Urban Development Institute of Australia
Published: 26 March 2023
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