NHFIC releases 2021–22 FHLDS data and trends

The FHLDS, NHG and FHG are Australian Government initiatives to support eligible home buyers purchase a home sooner. Collectively these initiatives are referred to as the First Home Loan Deposit Scheme (Scheme). On 1 July 2022 these initiatives were brought under the new Home Guarantee Scheme (HGS). 

The Government has significantly increased the capacity of the Scheme with a total of 50,000 places available in the First Home Guarantee (FHBG), FHG and the new Regional First Home Buyer Guarantee (RFHBG). Trends and insights on the new and expanded Scheme will be included in future years’ releases.  

Key insights from the report include: 

• In most states, the Government’s guarantees supported a higher proportion of all home buyers in 2021-22 than in previous years. Across Australia, around 1 in 7 first home buyers were supported by the Scheme in 2021-22, up from around 1 in 10 during 2020-21. 

• Relative to population share, Queensland and WA experienced the strongest demand for the Scheme. Queensland had the highest concentration of Government guarantees, with around 29 per cent of all FHLDS and 37 per cent of all FHG guarantee recipients residing in Queensland, almost double its 20 per cent population share. WA received 22 per cent of all NHG guarantees and around 17 per cent of all FHG guarantees, compared with its 11 per cent population share. 

• More than 5,400 guarantees, or 27 per cent, were issued to key workers in 2021-22, up from 23 per cent in 2020-21 (and up from less than 20 per cent in 2019-20). Of these, teachers and nurses accounted for more than half of the key worker recipients (57 per cent), while social workers accounted for 17 per cent and aged and disabled carers 9 per cent. 

• New data shows that across Australia, home buyers supported by the Scheme typically purchased houses with 3 or more bedrooms. Since inception on 1 January 2020, around 19,000, or 70 per cent, of dwellings purchased had 3 or more bedrooms. 

• Around 13,000, or 47 per cent, of dwellings purchased were more than 25 years old and tended to be around 18 per cent cheaper on average than newly constructed dwellings purchased under the Scheme over the same period.  

NHFIC CEO Nathan Dal Bon said: “The report demonstrates another year of strong demand for the Home Guarantee Scheme, with the Government’s significant expansion of the Scheme enabling more Australians to buy their own home sooner across the cities and regions”. 

NHFIC Head of Research Hugh Hartigan said: "The proportion of first home buyers supported has increased from 1 in 10 to 1 in 7, demonstrating the maturity of the Scheme in supporting first home buyers overcome the deposit hurdle to enter the housing market. 

An interesting aspect of the report is that nearly half of all first home buyers typically purchased properties that were more than 25 years old, suggesting these types of properties provide a good entry point into the market for first home buyers”. 

For more information, view the full report here.