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Shared home ownership report.

We’re working hard to help more New Zealanders get into their first home sooner. That includes shared home ownership pathways such as shared equity and leasehold, which can reduce the time needed to save a deposit and loan servicing costs.

Introduction.

New Zealand’s home ownership rates have been declining for decades. Currently around 60% of us own our own home, and on current trends that will fall below 50% in the next 25 years.

Home ownership brings a range of family benefits, including greater financial and personal wellbeing, and better connectedness to communities.

We worked with Deloitte to define the problem of declining home ownership rates and investigate the potential for shared home ownership to reverse the trend and help more New Zealanders achieve their housing dreams.

Findings and recommendations.

The report found that 152,000 New Zealand households are potentially eligible for shared home ownership pathways; however, only about 53,000 are aware of them.

It also found that housing providers are ready to provide more homes but are constrained by supply barriers. If those immediate barriers were removed, an estimated 10,000 shared home ownership homes could be built within 3 years.

The report makes four key recommendations to support the growth of shared home ownership:

Mindset

Aspiring homeowners and New Zealanders in general need to adjust their mindset and open their minds to innovative ways of owning a home such as shared ownership. All players in the shared-ownership system can assist this by promoting awareness.

Funding and risk settings

All stakeholders should work together to establish a greater range of reasonably priced funding streams to help the sector expand. This would likely involve a mix of funding from government, charities and not for profit, impact investment, finance from banks and new capital market investment instruments. The banking sector could also review its risk settings for community housing development loans to more reliably reduce the cost of bank funding for these loans.

Certainty

The Government could provide greater stability for the sector through a long-term national housing strategy and greater certainty of long-term funding for shared ownership housing. It could also provide clearer guidance and rules for local authorities to make it easier for community housing development and management.

Simplicity and standardisation

Buying a house is daunting enough, and shared-ownership models can add a layer of complexity that can be a barrier – both for aspiring home owners and providers. As much as possible, participants in the sector should simplify and standardise structures and documentation, whether that’s for financing a housing development, seeking government funding, or for seeking a mortgage

Stories from our customers.

Our shared home ownership options have already helped hundreds of New Zealanders onto the housing ladder.

Things you should know.

Westpac's eligibility criteria, home loan lending criteria and T&Cs apply.

Eligibility criteria and T&Cs may vary with each Equity Provider. Shared Ownership Agreement T&Cs apply.