The Government has announced a significant investment in social housing, allocating $140 million to provide 1,500 new social housing places.

This funding will be provided to Community Housing Providers (CHPs) starting from July 2025, addressing the urgent need for warm and dry homes for New Zealanders.

According to Housing Minister Chris Bishop, this investment is crucial as funding for new social housing places under the previous Government ends in June 2025.

The new social housing places will be allocated solely to CHPs, which currently provide over 13,000 social houses nationwide.

The funding for these new social housing places will come from ending the First Home Grant, which was deemed an expensive and inefficient way to support first home buyers.

The Government has chosen to reprioritise low-value expenditure to more important policy priorities, focusing support on New Zealanders who need it most.

The First Home Loan, which allows first home buyers to purchase a home with a deposit as low as five per cent, will be retained.

Additionally, KiwiSaver members can still withdraw funds for a first home house deposit.

The discontinuation of the First Home Grant is expected to generate savings of $245 million over a four-year forecast period with minimal effect on home ownership rates.

Kāinga Ora is no longer accepting new applications for First Home Grants, but will process existing applications and honour existing approvals.

This significant investment in social housing aims to address the pressing need for affordable housing in New Zealand.