9 Sep 2021

Increasing building costs another blow to first home buyers

From Midday Report, 12:16 pm on 9 September 2021

The government's first home buyer grant for new houses is being squeezed by the rising cost of building materials. The cost of bricks, timber and steel is steadily rising, with price increases of up to 50 percent over the past year. That's meaning increases to the cost of new builds and means first home buyers would lose their KiwiSaver grants - of up to $20,000 for a couple - if the cost rises above the Government-imposed price caps. It comes as CoreLogic's biannual housing affordability report says it now takes more than a decade for first home buyers to piece together a 20 percent deposit. Michael Cropp spoke to Lesley Harris from the First Home Buyers Club