The state government will double the first home owners grant for regional Victoria in a bid to draw more young buyers into the regions and counter the capital’s housing affordability crisis.

First home buyers building new homes in regional Victoria will be entitled to $20,000 as of July 1 this year, up from $10,000 for new homes valued up to $750,000.

Harrington Homes managing Director Andrew Harrington said the double grant would increase demand for home building in Horsham and the Wimmera.

“It’s about time the government realised that country Victoria needed a kick-start and that the state continues after you cross the West Gate Bridge,” he said.

“The Andrews Government has realised that small towns and farming communities have been doing it tough after many, many years of drought.”

Mr Harrington said market conditions and government policy have put pressure on housing construction.

“The first home buyers grant used to be larger, and only now it’s being increased,” he said.

“Building a new home has become more expensive as the cost of land has been going up.

“Banks have also tightened their lending policies in the last few months, which makes it harder for people to get a deposit together and financing to build a new home.”

About five per cent of workers in the Wimmera Southern Mallee region are involved in construction and 13 per cent of vocational students are studying in the field. 

GJ Gardner Homes marketing co-ordinator Corey Heard said the announcement was exciting.

“It’s good for first home buyers and regional areas that have land opportunities available for growth,” he said.

“It will help regional trades with medium-term job security.

“We expect to see an increase in leads, given that the announcement is for new builds and not existing houses.”

Mr Heard said it would be interesting to see how much more new homes would get built after the double grant comes in.

“Horsham is one of the places that does have land available for new houses,” he said.

DJ Hogan Builders owner and director Dean Hogan said the grants would help sustain the jump in activity following a good grain harvest,

“It’s fantastic. It’s going to help the housing market keep flowing,” he said.

“It will be able to get more young people into the housing market  

“We’ve been dealing with a lot of older clients lately.”

Hotondo Homes director Simon Lynch said news of the grants changes was fantastic.

“It’s not every day that the government gives you $20,000,” he said.

“It will put more revenue into the Wimmera going through builders, contractors and manufacturers.

“In previous years when first home buyers grant was high we definitely saw more homes being built.”