Pre-Budget announcement: New funding and savings
Published 22 May 24
In a pre-Budget announcement, the Government has set aside $140 million over four years for 1,500 new social houses and has discontinued the First Home Grant.
New social housing
The 1,500 new social housing places will be delivered from 1 July 2025 to 30 June 2027, which means on average, the delivery of 750 social housing places a year.
Read the Minister of Housing's announcement on the Beehive website(external link)
The new places will be provided by registered Community Housing Providers (CHPs).
There are no changes to the funding settings at this time (Income-Rent Related Subsidy, Operating Supplement) for CHPs.
Kāinga Ora will continue to deliver the social housing funded through Budget 2023.
Social housing or public housing?
Please note, the terms ‘social’ and ‘public’ housing are used interchangeably.
Discontinuation of First Home Grants
In the same announcement, the Minister has also noted that the First Home Grant is being discontinued, with the savings redirected to support the expansion of social housing. The more effective First Home Loan is being retained, enabling first home buyers to purchase a home with a deposit as low as five percent.
Read more about the First Home Loan on the Kāinga Ora website(external link)
Please note that Kāinga Ora is no longer accepting new applications for First Home Grants. However, existing applications and pre-approvals will still be honoured and processed.