Progressive Home Ownership
As house prices have increased, families who would once have bought a home have been priced out of home ownership.
The Government's $400 million Progressive Home Ownership Fund will help between 1,500 and 4,000 New Zealand families buy their own homes. The Fund will enable low to median income households partner with a progressive home ownership provider to access shared ownership, rent to buy, or leasehold arrangements to step into home ownership.
The Fund has a specific aim to address housing affordability issues for three priority groups: Māori, Pacific peoples, and families with children. The Fund will focus on places in New Zealand where housing affordability issues are most severe and where progressive home ownership can best help to address this.
Eligible households will be able to access the Fund through one of two approaches:
Supported
Low to median-income families can access the Fund through progressive home ownership providers, who will support these families into home ownership. Under this approach, there will also be a dedicated iwi and Māori pathway, with a specific focus on better outcomes for Māori. Further support through this approach will be available early next year.
Direct
Households at or above median incomes will be able to access progressive home ownership arrangements from a provider or directly from government. The government scheme will be available in early 2021.
Phase 1 of the Fund
We are taking a staged approach to the Fund and starting with initial funding of $45 million to support New Zealand families buy their own homes.
To deliver Phase 1, we are working with well-established housing providers with existing progressive home ownership products. These providers are experienced and have the scale, size, and access to developments needed to operate more quickly.
In July last year, the Minister of Housing announced the first two confirmed PHO providers - NZ Housing Foundation and Queenstown Lakes Community Housing Trust. Loans to these providers, through the PHO Fund, will together help around 100 low to median income families step into home ownership in Auckland and Queenstown.
The next confirmed PHO provider is Manawa PHO Limited (the housing arm of Ngā Pōtiki ā Tamapahore Trust). The loan will help 30 more families step into home ownership in Pāpāmoa, an area with significant housing affordability issues.
Funding will soon be available to a wider group of providers covering a broader range of locations.
From early 2021 households can access the direct scheme from Kāinga Ora – Home and Communities website.
For more information
We have listed some Frequently Asked Questions about the Fund - please see the section below.
If you would like further information about the Government’s Progressive Home Ownership Fund, please email info@HUD.govt.nz.
Progressive home ownership factsheets
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Schemes the Progressive Home Ownership Fund will
Schemes available through the Progressive Home Ownership fund - factsheet October 2020.
October 9, 2020
Pdf, 1.1 MB
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Progressive Home
A $400 million Fund to help New Zealand families that have been priced out of home ownership to buy their own home.
July 24, 2020
Pdf, 951 KB
Family helped into progressive home ownership
The video below featuring Tony and Tonya Seiuli on how the Progressive Home Ownership Fund is already impacting the life of a family as they partner with the NZ Housing Foundation to become home owners.
Frequently Asked Questions
Published: January 22, 2021