CHANGES to the ACT first home owners grant have been welcomed by the property and construction industries.
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The Canberra Times revealed on Saturday that the ACT government would announce increases to the grant as part of Tuesday's 2013-14 budget.
In September this year the ACT First Home Owner Grant will increase from $7000 to $12,500.
But it will only be available to buyers purchasing new homes or homes they plan to ''substantially renovate''.
Real estate agents and the construction sector have welcomed the move as a positive decision by the government that should stimulate activity in the housing market.
Master Builders Association of the ACT executive director John Miller said the move would ignite the construction industry and create stronger competition with NSW.
''Obviously at this point in time we welcome any initiative that will create opportunities for our industry,'' he said.
Property Council of the ACT acting executive director Lino Iacomella said the move would help revitalise the residential construction sector as well as boost housing supply.
He said over the long term it would make a positive difference to housing affordability in the territory.
Real Estate Institute of the ACT president Michael Kumm said the decision to boost the grant was ''an extremely positive step for the ACT government to take''.
''It's unfortunate it has come off established homes but that's not the be-all and end-all,'' he said.
''It just means there will be more competition now on new homes.''
Luton Properties principal Richard Luton said it was welcome news for the real estate industry and would stimulate the new home market.
LJ Hooker Manuka principal Stephen Thompson said losing the grant for established homes would not be a factor because buyers would look at homes they could renovate.
He expected the changes to bring more buyers into the market.
Peter Blackshaw Manuka sales agent Mario Sanfrancesco said that, while any incentive to assist first home buyers was welcome, the challenge would be making sure new homes were ''in the price bracket that would suit the first home buyer''.
The ACT government's coming budget will also tighten access to the Land Rent Scheme and increase the income threshold for the Home Buyer Concession Scheme from $150,000 to $160,000.
