Right to Buy scheme has proved an overwhelming success

6/12/94

Homeswest's Right to Buy scheme had proved to be an overwhelming success after the first full year of operation, Housing Minister Kevin Prince said today.

Mr Prince said that more than 3,830 tenants - or about 10 per cent of Homeswest's clients - had applied to purchase their homes through the scheme, which was launched last December.

The Right to Buy scheme allows long-term Homeswest tenants to buy the homes they are living in at a discount of up to $20,000 from the current market value.

The Minister said 567 families, who a year ago could have only expected to continue to rent in the years ahead, were now homebuyers with both pride and equity in their own homes.

"Another 235 families have signed contracts and will soon be living in a home of their own," Mr Prince said.

"As more families qualify under the length of tenancy provisions, or through increasing their incomes to the point at which a home loan can be substantiated, more will join the ranks of home-owners."

Mr Prince said the sale of homes through the Right to Buy Scheme had raised more than $43 million - all of which was being used by Homeswest to buy or build new rental stock.

"Right to Buy is increasing Homeswest's available rental stock, while at the same time assisting families to achieve the dream of home ownership," he said.

"The scheme has proved particularly popular in the metropolitan area with the sale of 324 homes, while in country areas there were 243 sales with an average price throughout the State of $76,190."

Mr Prince said that while the scheme's first year target of 750 home sales would be exceeded, higher interest rates had worked against any increase in the number of people able to participate in the scheme.

Media contact:  Paul Plowman (09) 222 9595