Will the Labor Party Deliver on Their Election Promises to Home Buyers?

Update: As of 8/5/25 Greens Leader Adam Bandt has yet to secure his seat in Melbourne.

Labor’s 2025 election win and the Greens’ position in the Senate are poised to reshape Australia’s housing landscape. In the lead up to this year’s federal election, Labor promised strong support for first home buyers, including a 5% deposit scheme and the construction of 100,000 new homes, exclusively for first home buyers[1](ALP, 2025).

It’s a big commitment with significant potential, especially for those struggling to enter the market, but it may also sideline existing homeowners and investors already feeling the squeeze from rising living costs.

Labor’s Big Win: What It Means for First Home Buyers and property Investors

Labor has retained a majority in the House of Representatives, giving the government the power to move forward with key housing initiatives promised during the campaign.

1. 100,000 New Homes on the Horizon

Labor is backing the construction of 100,000 new homes, starting from 2026–27. This large-scale initiative will be delivered through partnerships with state governments and private developers. These homes are intended to be available exclusively to first home buyers, limiting opportunities for investors in this space. [2]

2. First Home Buyers Can Get In With 5% Deposit

The Home Guarantee Scheme continues into 2025, allowing eligible first home buyers to purchase a home with just a 5% deposit, while avoiding Lenders Mortgage Insurance (LMI). The government will guarantee part of the loan, making it easier for buyers to get into the market without family assistance. This has been extended from previous initiatives and now intends to apply to all first home buyers. [3] (Albanese 2025).

What Will Change in Labor’s Second Term?

The government has updated several aspects of its housing policies to better reflect current market conditions and improve accessibility. Prime Minister Anthony Albanese said:

“We want more Australians to buy a home of their own sooner with lower deposits.” [3]

These changes aim to unlock access for Australians who’ve been diligently saving but feel priced out of the market.

An Increase in Property Price Caps for The Home Guarantee Scheme

The Home Guarantee Scheme’s property price caps have been lifted to account for housing price growth in key cities:

New South Wales:

$1,300,000 in Sydney and Regional Center, $800,000 in Regional NSW

Victoria

$950,000 in Melbourne and Regional Center, $650,000 in Regional VIC

Queensland:

$1,000,000 In Brisbane and Regional Center, $700,000 in Regional QLD

Western Australia

$850,000 in Perth, $600,000 in Regional WA

South Australia

$900,000 in Adelaide, $500,000 in Regional SA

Tasmania

$700,000 in Hobart, $550,000 in Regional TAS

ACT

$1,000,000

Northern Territory

$600,000

Key Benefits

More Access in High-Demand Areas:

Buyers in growing metro and regional centers now have better chances of finding eligible properties.

Low-Deposit Entry:

First time Home Buyers can enter the market with as little as 5% deposit, sidestepping Lenders Mortgage Insurance.

What Should First Home Buyers Do Now?

While the property market remains competitive, these policy changes may tip the balance in your favour. Here’s how to make the most of the 2025 housing reforms:

Check Your Eligibility

Look into the Home Guarantee Scheme and the expanded Help to Buy program. Broader criteria now mean more young Australians may be eligible. Speak with your local MoneyQuest mortgage broker to assess your eligibility, borrowing power, and available grants.

Explore Growth Areas

Explore outer-metro and regional areas flagged for infrastructure and housing investment. These zones may see faster growth and better availability.

Build Your Finance Toolkit

• Strengthen your savings
• Look into the local property prices
• Connect with your local MoneyQuest broker

What Impact Could The Greens Have?

Labor may dominate the lower house, but the Senate presents a different landscape. With a projected 11 seats, the Greens now hold the balance of power in the Senate, giving them significant sway in shaping housing reform

The Greens favour policies like rent control and expanded public housing so Labor may need to compromise to get legislation through. With Labor making strides in both houses, The Greens will be the only numbers Labor needs for support to pass legislation [4] (SBS, 2025).

What Does This Mean For Homeowners?

These changes could drive buyer demand, so we may expect property prices to continue to grow. Additionally, new infrastructure and housing projects could boost long-term value in growing suburbs. However if the Greens are able to secure more public housing, it could drive prices down for nearby locales.

What Does This Mean For Investors?

Strong demand and government-supported supply may fuel development opportunities. However as discussed, the Government backed 100,000 home will only be available for first home buyers to own, not investors.

The Greens’push for rental caps could also reduce how much investors can charge as regular rental repayments.

Whether you’re a first home buyer, homeowner, or investor, the months ahead will be critical. Now is the time to understand your eligibility, reassess your financial position, and stay informed as housing reforms begin to take shape. The path to home ownership may be opening wider but it’s still essential to act strategically. Reach out to your local MoneyQuest mortgage broker, and start your finance journey today.

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