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 a period of up to 15 years (in practice 5-10 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 a period of up to 15 years (in practice 5-10 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

1,169 (as at 30 November 2024)

Te Aho Tāhuhu webinar series (December 2021) 

A series of 10 webinars was produced in conjunction with Te Matapihi to discuss various aspects of the Progressive Home Ownership Scheme.

Watch the webinars on the Te Matapihi website(external link) 

Watch the webinars on YouTube(external link)

Progressive home ownership is already helping families into their first homes

We have supported the following providers (as at 30 November 2024):

Provider 

PHO scheme

Total number of homes contracted

Number of homes settled

Location 

Bridge Housing Charitable Trust 

Leasehold

35

24

Cambridge, Waipā, Te Awamutu 

Doing Good Foundation Limited 

Rent to Buy

13 

7

Tauranga 

Habitat for Humanity (Christchurch) Limited 

Rent to Buy

2 

2 

Christchurch 

Habitat for Humanity (Dunedin) Limited 

Rent to Buy

9

0 

Dunedin 

Habitat for Humanity (Nelson) Limited 

Rent to Buy

38

24

Nelson 

Habitat for Humanity Central Region Limited 

Rent to Buy

48 

30

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

Rent to Buy

10

1

Across New Zealand

Habitat for Humanity Northern Region Limited 

Rent to Buy

36

12

Pukekohe, Mangere East & Whangārei, Tikipunga 

Homes For People Trust 

Rent to Buy and Shared Ownership

15 

9

Palmerston North 

Ka Uruora

Rent to Buy and Shared Ownership

135

2

Taranaki, Okāto, Napier, Hastings

Kaenga Hou Trust

Rent to Buy and Shared Ownership

20

0

Gisborne

Manawa Community Housing Trust 

Leasehold

20

6

Papamoa, Tauranga, Bay of Plenty

New Zealand Housing Foundation (HF3 PHO Ltd) 

Shared Ownership and Rent to Buy

223 

91

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

Ngāti Whātua Orākei Whai Rawa

Shared Ownership (Leasehold)

19

0

Auckland

Ōtautahi Community Housing Trust

Leasehold

17

0

Christchurch

Owhata Kōhanga Rākau LP

Leasehold and Freehold

37

0

Rotorua/Te Puke

Penina Trust

Rent to Buy

9

4

Manurewa, Auckland Central

Queenstown Lakes Community Housing Trust 

Leasehold and Rent to Buy

116

64

Queenstown 
Tauhara North Kāinga Ltd

Shared Ownership

9

0

Koutu, Rotorua
Te Ranga Mārō - Te Tihi o Ruahine

Rent to Buy

15

0

Palmerston North
Te Runanga o Kirikiriroa

Rent to Buy

27

0

Hamilton
Te Rūnanga o Ngāi Tahu

Shared Ownership

8

6

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

Leasehold

24

0

Titahi Bay
Te Taiwhenua O Heretaunga

Shared Ownership

11

0

Waingākau
Te Tumu Kāinga

Shared Ownership

15

0

Mangere
Whaakatu Whānaunga Trust

Rent to Own

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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