# Labour announces rent-to-buy scheme for public housing tenants

> Labour's new rent-to-buy scheme helps public housing tenants save for home deposits.
- Title: Labour announces rent-to-buy scheme for public housing tenants
- Summary: Labour's new rent-to-buy scheme helps public housing tenants save for home deposits. Labour plans to let public housing tenants save $5200 yearly through a…
- Keywords: labour, rent-to-buy, public housing, kāinga ora, first home loan, deposit scheme, auckland, politics, news, announces, scheme, public
- Source: NZ Herald — https://nzherald.co.nz/nz/politics/labour-announces-rent-to-buy-scheme-for-public-housing-tenants/TK2BPZM3IZDW5NYULFTP6KZSRE
- Read time: 1 min
- Topics: labour, rent-to-buy, public housing, kāinga ora, first home loan, deposit scheme, auckland, politics, news
## Labour's rent-to-buy scheme
Labour's housing spokesman Kieran McAnulty announced a rent-to-buy scheme for public housing tenants.
## Weekly deposit credits
The scheme credits $100 a week towards a house deposit held in a trust account.
## Annual savings benefit
Labour says the scheme helps tenants save $5200 a year for home deposits.
## First Home Loan expansion
Labour will expand the First Home Loan scheme to allow 5% deposits with a $300,000 income cap.
## Deposit comparison
For a $700,000 home, 5% deposit is $35,000 versus $140,000 for 20% deposit.
## Home purchase option
Public housing tenants can buy their homes with Kāinga Ora under the new scheme.
## Build ratio policy
For each house sold, Labour plans to build three new homes to maintain housing supply.
## Current tenant numbers
About 1100 public housing tenants pay market rent and could potentially buy homes.
## Financial feasibility
McAnulty says tenants can usually meet mortgage requirements but struggle with deposit savings.
## Kāinga Ora build program
Funding for the scheme is part of Labour's Kāinga Ora build program to expand housing.
## International comparison
Labour cites UK housing policy failures from not maintaining build-to-sale ratios.
## Existing home purchase
Public housing tenants can already buy homes from Kāinga Ora through existing programs.
## Gang controversy
Labour faced criticism after candidate Kerrin Leoni resigned over gang campaigning photos.
## Policy timing
McAnulty said cost of living issues have been discussed more frequently than gang controversies.
## Key takeaway

Labour plans to let public housing tenants save $5200 yearly through a rent-to-buy scheme to buy homes with a 5% deposit.