Furious Sunrise Host Nat Barr Confronts Albanese Minister Clare O’Neil Over ‘Disastrous’ Five Per Cent Deposit Scheme Amid Warnings House Prices Will Explode
- Nat Barr grilled Clare O’Neil over the government’s plan to open doors for young families entering the housing market
- Experts warn the scheme will lead to a massive hike in house prices, rendering it unaffordable for many
- Barr clashed with O’Neil, saying the government was not doing enough to address the housing supply crisis
Nat Barr, Sunrise host, went head-to-head with Clare O’Neil, the federal Housing Minister, over the government’s contentious five per cent deposit scheme, which is set to send house prices soaring. The scheme, intended to help young families enter the housing market, has been labelled a “disaster” by critics who claim it will only exacerbate the housing affordability crisis.
“You’re adding demand into a hot property market. Even the Reserve Bank Governor says nothing you do will have any impact on the supply of houses in this country for the next two years at least. So, something is going wrong here?” Barr thundered.
O’Neil remained resolute, insisting the scheme would “genuinely open up home ownership to a generation of young people” who currently face an uphill battle to save for a deposit. However, Barr was quick to challenge her, questioning how the government expected to address the issue of supply when demand was set to surge.
“High school economics says if you increase demand and not supply, which you are not doing enough, by all accounts, even the RBA Governor says you are not. If you increase demand and not supply, the prices will go up,” Barr argued.
O’Neil countered by citing Treasury modelling that suggested the impact on housing values would be a mere 0.5 per cent over six years. However, Barr was unimpressed, pointing out that nearly every economist disagreed with the Treasury’s findings, warning that prices would skyrocket by as much as 10 per cent in the first year alone.
The controversy surrounding the scheme has sparked heated debate, with many experts warning it could have disastrous consequences for the already embattled housing market. As the debate rages on, one thing is clear: the fate of Australia’s housing market hangs in the balance, and the consequences of this policy will be felt for years to come.