Kevin Rudd launches housing affordability fund

THE housing affordability crisis in Australia is out of control but the Federal Government is confident it can bring down the relative cost of purchasing a new home, Prime Minister Kevin Rudd says.

The government yesterday officially launched its five-year $512 million housing affordability fund at a residential development in suburban Canberra.

The fund, announced during last year's election campaign, will bring down the cost of new houses by up to $20,000 by reducing planning and infrastructure costs, Mr Rudd claimed.

"The challenge is to make it work, so that the dream of owning your own home becomes more of a reality," he said.

"What I am signalling loud and clear is that we want to tackle the housing affordability crisis for Australian families which has gotten out of control, and we need to start bringing it back under control."

State, territory and local governments, along with private developers, will be able to apply for grants from the fund as of today.

The grants will be targeted to areas with high demand for new, entry-level homes.

In 1996, the first year of the Howard government, the average new home cost four times the annual average wage, but by the end of last year a home cost seven-and-a-half times the average wage, Mr Rudd said.

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Kevin Rudd launches housing affordability fund | The Daily Telegraph