Both major parties’ policies on housing are bad.

Both major parties have been guilty of juicing demand with previous policies. This started all the way back in the year 2000 with first homeowner’s grants. Study after study has shown that giving one group of home buyers more money or access to more borrowing just pushes up house prices.

Policies that both major parties have that is this category include:

• Access to super for first home buyers (LNP)
• 5% deposit without mortgage insurance for first home buyers (ALP)
• Tax deductibility for interest payments for first home buyers buying new homes (LNP)
• Govt taking up to a 40% equity stake in buying a home (ALP)
• Lowering borrowing standards to make it easier to get a larger mortgage (LNP)

These make for nice announceables but they will drive up house prices and make housing less affordable.