WA unveils suite of affordable housing policies ahead of budget

The state government said that the new round of funding was part of its broader revitalisation of the government-backed lender Keystart, which will now become a government trading enterprise and receive increased powers to fulfil its affordable housing objectives.

New funding for statewide shared equity schemes

The Western Australian government announced that it would invest $210 million into Keystart’s new shared equity product that will launch in September, and apply to new or under-construction apartments, townhouses or other multiresidential dwellings.

Through the investment, Keystart will offer 1,000 shared equity loans once the scheme launches, with the Western Australian government purchasing an equity share of up to 35 per cent of a home’s value, or a maximum of $250,000.

Premier Roger Cook highlighted that Keystart was a response to socioeconomic shifts in Western Australia that have increased the barriers to home ownership and slowed the delivery of housing supply across the state.

“Western Australia’s booming economy and growing population has put pressure on our housing market, which is why my government is laser-focused on ensuring every Western Australian has a home,” he said.

Cook further explained that the new Keystart offering would help to improve access to modular affordable homes that can be quickly delivered to meet the needs of Western Australia’s expanding population.

“This investment is one of a wide range of levers my government is utilising to boost housing supply and improve access to affordable homes for more Western Australians,” Cook said.

As part of the suite of announcements, Keystart will also offer a new low-deposit modular loan option that will improve statewide access to affordable modular homes that can be quickly delivered to market.

The state government said that the new product will particularly help residents in regional Western Australia, where access to trades workers and the costs of a traditional build can heighten the barriers to home ownership.

Focusing on first home buyers in particular, the Western Australian government also revealed that a new pilot product for graduates and apprentices will launch later this year.

The program will offer features such as low housing deposits, lower mortgage repayments, and free financial coaching and resources to younger Western Australian buyers, in the hopes of accelerating Western Australian residents’ entry into the housing market, and transitioning their loan to a commercial lender over time.

New build-to-rent initiative unveiled

On the supply side, the state government noted that its Build to Rent Kickstart Fund will launch by the end of 2025.

The build-to-rent fund will provide up to $75 million in no-interest construction and low-interest loans to expedite the delivery of developments across the state.

Treasurer Rita Saffioti said that the Western Australian government’s recent suite of changes was focused on boosting supply and providing various pathways to affordable housing across the state.

“We want to see Keystart helping more Western Australians right around the state achieving home ownership whether that’s more modular homes in regional WA or getting affordable apartments and other multiresidential developments off the ground sooner,” Saffioti said.

The Real Estate Institute of Western Australia (REIWA) president Suzanne Brown, said the new schemes would help to ease supply and affordability issues in Western Australia’s housing market.

“Innovative solutions are needed to help build more affordable new homes. Modular homes can be more affordable and built more quickly than a traditional build,” Brown said.

“Keystart’s low deposit modular loan product will make this type of build more accessible for home buyers, which may help boost new home supply,” she added.

Brown also said that Keystart’s upcoming shared equity loan program would help increase pathways for first-time home buyers in Western Australia.

“Strong property price growth over the past few years has made saving a deposit and purchasing a home more difficult for many people and this scheme will help make home ownership more achievable for those struggling to get their foot on the property ladder,” she said.

Brown said that for the new Build to Rent Kickstart Fund to be successful, further supply will be needed to provide rental relief across the state.

“Build-to-rent is an innovative solution that will create more rental supply, but the current constraints in the building industry mean these projects are not cost-effective for institutional investors.”

“We greatly need support in this space to deliver these projects and help prevent a return to the challenging rental conditions of the past few years,” she said.

She said that the investment was a step in the right direction to make way for further investment in policies that will create more rental homes.

“We know this investment won’t have an immediate impact on the market, but it is a move in the right direction and will help meet future demand as our population continues to grow,” Brown concluded.