Progressive Home Ownership Fund

As house prices have increased, many individuals and whānau who would have once bought a home have been priced out of home ownership. Progressive home ownership is one way to help them into their own homes.

How progressive home ownership works 

Progressive home ownership (PHO) can help people into their own homes through arrangements like rent-to-buy, shared ownership or leasehold schemes.  

Rent-to-buy

An eligible household initially rents their home from an approved PHO provider. Within period of up to 20 years the household puts aside savings and buys the home from the provider.  

Shared equity 

An eligible household becomes a part-owner in a home, along with an approved PHO provider. Within period of up to 20 years, the household buys out the PHO provider and becomes the sole owner of the property. 

Leasehold 

The eligible household buys a registered leasehold interest in a home from a PHO provider with the right to occupy the property over the long-term, such as 100 years. The freehold interest in the property is retained by the provider and the leaseholder pays a modest ground rent, as well as servicing any mortgage commitment.  

Freehold home ownership is not achieved using a leasehold model, but the leaseholder has secure tenure in their own home and the opportunity to build savings over the term of the lease. 

About the Progressive Home Ownership Fund 

The $400 million Progressive Home Ownership Fund offered approved PHO providers funding via an interest free loan. The PHO providers then use that money to fund homes that are then used to partner with individuals, families and whānau in a rent-to-buy, shared equity or leasehold arrangement.  

Who the PHO fund helps

The PHO fund can help: 

  • lower-to-median income households who are unlikely to be able to buy a home without a reasonable level of financial and non-financial support 
  • first-home buyers who can service a mortgage but don’t have a sufficient deposit 
  • households that have at or above median incomes but don’t earn enough to service a low-deposit home loan at current house prices. 

It aims to increase home ownership for three priority groups: 

  • Māori 
  • Pacific peoples, and 
  • families with children.

Eligibility  

Applicants must: 

  • be legally able to buy a home in New Zealand (or be married to, or in a civil union or de facto partnership with someone who is legally able to buy a home in New Zealand) 
  • have a household income before tax of no more than $150,000 (except for multi-generational households (a household that normally lives together and is made up of either three or more generations (e.g., grandchildren, parents and grandparents living together) or two generations with multiple related family units (or cousins living together with their families) or Larger Whānau  of 6 or more who normally live together)
  • be a first homebuyer or a second chancer (someone who has owned a home before but is back in the same financial situation as a first-time buyer e.g. due to a divorce). 

Applicants must also commit to living in the house as their main place of residence for at least three years i.e. they’re not buying it as an investment property. 

As well as this general eligibility criteria, PHO providers can also apply their own criteria.  

How to buy a home through the Progressive Home Ownership Fund 

Individuals and whānau can buy a home through a programme managed by an approved PHO provider. 

First Home Partner with Kāinga Ora – Homes and Communities 

Please note due to high demand, the First Home Partner fund is now fully subscribed and is currently not accepting new applications.

Find out more about changes to First Home Partner on the Kāinga Ora website.(external link)(external link) 

 

Total number of homes contracted

Number of homes settled

Kāinga Ora (First Home Partner) 

 1,184

1,129 (as at 31 May 2024)

Te Aho Tāhuhu Webinar Series (Dec 2021) 

A series of 10 webinars was produced in conjunction with Te Matapihi to discuss various aspects of the Progressive Home Ownership Scheme and these webinars can be accessed through the links below.

PHO Approved Providers 

The following organisations are Approved PHO Providers (as at 31 May 2024):

Name of provider

 PHO scheme

Bridge Housing Charitable Trust

 Leasehold

Doing Good Foundation Limited

 Rent to Buy

Habitat for Humanity New Zealand Limited

 Rent to Buy
Habitat for Humanity Northern Region Limited

Rent to Buy

Hikurangi Enterprises Ltd

 Rent to Buy and Shared Equity
Homes For People Trust Rent to Buy and Shared Ownership

Ka Uruora Aotearoa Trust

 Shared Ownership
Kāinga Ora (First Home Partner) Shared Ownership
Manawa Community Housing Trust Leasehold
New Zealand Housing Foundation (HF3 PHO Ltd) Shared Ownership and Rent to Buy

Ngāti Whātua Orākei Whai Rawa

 Shared Ownership (Leasehold)
Ōtautahi Community Housing Trust Leasehold
Ōwhata Kōhanga Rākau Housing LP Shared Ownership
Penina Trust Rent to Buy
Queenstown Lakes Community Housing Trust Leasehold and Rent to Buy
Tauhara North Kāinga Limited Shared Ownership
Te Āhuru Mōwai Limited Partnership Rent to Buy and Shared Ownership Scheme
Te Arawa Lakes Trust Shared Equity
Te Ranga Mārō - Te Tihi o Ruahine Rent to Own
Te Runanga o Kirikiriroa Charitable Trust Rent to Buy

Te Rūnanga o Ngāi Tahu

 Shared Ownership

Te Rūnanga o Toa Rangatira Inc (Toa Rangatira Trust)

 Leasehold

Te Tahua o Rangitane Ltd

 Rent to Own
Te Taiwhenua O Heretaunga Shared Ownership

Te Tumu Kāinga

 Shared Ownership

Whaakatu Whānaunga Trust

 Rent to Own

Progressive home ownership is already helping families into their first homes

We have supported the following providers (as at 31 May 2024):

Provider 

Total number of homes contracted

Number of homes settled

Location 

Bridge Housing Charitable Trust 

15 

6 

Cambridge, Waipā 

Doing Good Foundation Limited 

13 

7

Tauranga 

Habitat for Humanity (Christchurch) Limited 

2 

2 

Christchurch 

Habitat for Humanity (Dunedin) Limited 

9

0 

Dunedin 

Habitat for Humanity (Nelson) Limited 

24 

17 

Nelson 

Habitat for Humanity Central Region Limited 

46 

25

Hamilton, Upper Hutt, Tauranga & Rotorua  
Habitat for Humanity New Zealand

10

0

Across New Zealand

Habitat for Humanity Northern Region Limited 

33

4 

Pukekohe, Mangere East & Whangārei 

Homes For People Trust 

15 

6 

Palmerston North 

Manawa Community Housing Trust 

20

0 

Papamoa, Tauranga, Bay of Plenty

New Zealand Housing Foundation (HF3 PHO Ltd) 

223 

68

Flat Bush, Mangere, Panmure, Tamaki, Papatoetoe, Ōmokoroa 

Ngāti Whātua Orākei Whai Rawa

19

0

Auckland

Ōtautahi Community Housing Trust

5

0

Christchurch

Penina Trust

5

3

Manurewa

Queenstown Lakes Community Housing Trust 

115

64

Queenstown 
Te Ranga Mārō - Te Tihi o Ruahine

 

15

0

Palmerston North
Te Rūnanga o Ngāi Tahu

8

0

Christchurch
Te Rūnanga o Toa Rangatira Inc (Toa Rangatira Trust)

24

0

Titahi Bay
Whaakatu Whānaunga Trust

8

0

Ōpōtiki

You can track the progress of the PHO Fund in contracting and placing families in to their homes through our Housing Dashboard. 

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