Housing Acceleration Fund to increase supply of homes
23 March 2021
The Government today announced its Housing Acceleration Fund to help increase the supply of houses and improve affordability for home buyers and renters.
The key components of the Housing Acceleration Fund are:
- an infrastructure fund (to unlock a mix of private sector led and Government led developments)
- additional funding for the Government’s Land for Housing Programme to accelerate development of vacant or underutilised Crown owned land, operate in more regions, and deliver a broader range of affordable housing options for rental and home ownership.
The Housing Acceleration Fund will be complemented by:
- a Kāinga Ora Land Programme for strategic land purchases to increase the pace, scale and mix of housing developments (including more affordable housing).
- a refocused $350 million Residential Development Response Fund. This Fund was originally established to cushion the impact of COVID-19 on construction sector activity and jobs, but has not been required. The fund will focus on increasing affordable housing provision (rental and home ownership) on land owned by iwi and Māori groups, councils, community groups and private developers, through the Crown sharing some of the cost and risk.
- An increase in First Home Products(external link) (First Home Grants and Loans) income and house price caps for both new and existing properties in some locations, to enable more first home buyers to purchase homes. With the tax changes this provides a significant boost for first home buyers.
More information on the Housing Acceleration Fund is available on the Ministry of Housing and Urban Development(external link) website.
Page updated: 23 March 2021