The Federal Government has handed down its 2025-26 Budget, and housing supply and affordability were firmly in the spotlight. Several new initiatives were announced that could impact homeowners, buyers, renters, and investors right here in Western Australia.

Here at Holdsworth Real Estate, we’ve broken down the key measures you need to know about:

1. Speeding Up Home Building: Focus on New Methods

To tackle the national housing shortage and work towards the goal of 1.2 million new homes in five years, the government is investing in faster construction techniques:

• Prefab & Modular Boost: $54 million is allocated to help states like WA accelerate the construction of prefabricated and modular homes, which can potentially be built up to 50% faster.
• Cutting Red Tape: $120 million is committed to encourage states to streamline approvals and remove barriers hindering modern construction methods.
• National Certification: A voluntary national certification process for offsite construction is planned ($4.7M funding) to simplify approvals while maintaining quality.

What this means: This push aims to increase the overall supply of new homes more quickly, which could eventually help ease pressure on prices and availability in the longer term.

2. Major Win for First Home Buyers: Expanded ‘Help to Buy’ Scheme

This is significant news for aspiring homeowners in WA! The government’s ‘Help to Buy’ shared equity scheme is being expanded:

• How it Works: The government essentially co-purchases a home with you, taking an equity stake (up to 40% for new homes, 30% for existing). This reduces the size of your mortgage and your repayments. The government’s share is repaid over time or when the property is sold.
• Increased Income Caps: Eligibility is widening. Income limits will rise to $100,000 for individuals (up from $90k) and $160,000 for joint applicants/single parents (up from $120k).
• BIG NEWS for WA: Property price caps under the scheme have substantially increased!
  • Perth: Up to $850,000 (from $600k)
  • Regional WA: Up to $600,000 (from $450k)
• Eligibility Basics: You’ll need at least a 2% deposit and funds to cover associated costs (stamp duty, legal fees etc.).
• Timeline: The expanded scheme is expected to open for applications later this year (2025) and aims to help 10,000 buyers nationally per year.

What this means: This is a potential game-changer for many WA first home buyers who were previously locked out due to income or price constraints. The higher price caps better reflect current Perth and regional market conditions.

3. Restrictions on Foreign Purchases of Existing Homes

• Two-Year Ban: Foreign buyers will be temporarily banned from purchasing existing residential dwellings for two years, starting from April 1, 2025.
• Land Banking Tackled: Funding ($8.9M) is also allocated to ensure foreign-owned vacant land is developed within a reasonable timeframe.

What this means: This policy aims to prioritise Australian residents in the established housing market, potentially reducing some competition for existing properties.

4. Continued Support for Social & Affordable Housing

The Budget confirms the ongoing rollout of the $10 billion Housing Australia Fund, expected to support the delivery of around 18,000 social and affordable homes nationally.

5. Addressing Homelessness

Significant funding is directed towards homelessness prevention and support:

• $1 billion for crisis and transitional accommodation (especially for women, children, and youth).
• Support for homelessness organisations and state/territory initiatives ($6.2M + $9.3M).

6. Cost of Living Relief: Energy Bill Rebate

On a broader note, every household (and eligible small businesses) will receive a $150 energy bill rebate starting from July 1, 2025. This will be credited directly to electricity bills in quarterly instalments.

Navigating the Budget Changes

The 2025-26 Federal Budget introduces several initiatives set to influence the WA property market, particularly boosting supply efforts and offering substantial new pathways for first home buyers.

Understanding how these policies might affect your buying, selling, or investment strategy is crucial. The team at Holdsworth Real Estate stays informed on all market shifts and policy changes to provide you with tailored, expert advice.

Whether you’re a first home buyer excited by the Help to Buy changes, a seller considering the market, or an investor evaluating your options, contact us today to discuss how these budget measures might impact your property journey.