Labour unveils rent-to-buy plan to help public housing tenants purchase homes
Labour proposes a rent-to-buy scheme that credits tenants $100 a week toward a deposit, letting them eventually buy the property they rent.
Labour’s election platform includes a rent-to-buy initiative aimed at public housing renters. Eligible tenants in Kāinga Ora and selected community housing properties would receive a $100 weekly credit toward a deposit, accumulating $5,200 annually in a trust account. When ready, they could buy their home at a price determined by an independent valuation.
The party also intends to expand the First Home Loan scheme, increasing the income limit to $300,000 and permitting purchases with just a five-percent deposit. Applicants could use both the rent-to-buy credit and the loan scheme together. Additionally, Labour promises to construct three new public homes for every Kāinga Ora property sold under the program, using sale proceeds to fund the builds, while community housing providers may opt in or out.
Why it matters
The plan could boost home ownership for low-income renters and reshape public-housing policy.
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