Shared ownership housing options could help thousands more New Zealanders into their own homes
Affordable shared home ownership options, such as shared equity and leasehold, could help tens of thousands more New Zealanders into their own homes, but work is needed to help the sector scale up, according to new research released by Westpac.
The Westpac NZ Shared Home Ownership Report finds home ownership has fallen from 75% in the early 1990s to less than 60% today and is on track to fall below 50% by 2048.
The report, authored by Deloitte, estimates that 152,000 lower-and-middle-income Kiwi households who are currently renting could be eligible for affordable shared equity and leasehold home ownership pathways. However, the report finds most aren’t aware of these options, and community housing providers (CHP) face barriers to scaling up their capacity to provide more homes.
Affordable shared equity and leasehold arrangements involve a third party – usually a CHP – contributing equity or land towards a customer’s first home purchase, reducing the size of deposit needed and making loan repayments more affordable.
If immediate barriers were removed, an estimated 10,000 extra shared home ownership houses could be built within three years.
Westpac NZ has set a target of at least $1 billion in lending to affordable housing solutions over the next three years.