Progressive Home Ownership Fund
As house prices have increased, many individuals and whānau who would have once bought a home have been priced out of home ownership. Progressive home ownership is one way to help them into their own homes.
How progressive home ownership works
Progressive home ownership (PHO) can help people into their own homes through arrangements like rent-to-buy, shared ownership or leasehold schemes.
Rent-to-buy
An eligible household initially rents their home from an approved PHO provider. Within a period of up to 15 years (in practice 5-10 years), the household puts aside savings and buys the home from the provider.
Shared equity
An eligible household becomes a part-owner in a home, along with an approved PHO provider. Within a period of up to 15 years (in practice 5-10 years), the household buys out the PHO provider and becomes the sole owner of the property.
Leasehold
The eligible household buys a registered leasehold interest in a home from a PHO provider with the right to occupy the property over the long-term, such as 100 years. The freehold interest in the property is retained by the provider and the leaseholder pays a modest ground rent, as well as servicing any mortgage commitment.
Freehold home ownership is not achieved using a leasehold model, but the leaseholder has secure tenure in their own home and the opportunity to build savings over the term of the lease.
About the Progressive Home Ownership Fund
The $400 million Progressive Home Ownership Fund offered approved PHO providers funding via an interest free loan. The PHO providers then use that money to fund homes that are then used to partner with individuals, families and whānau in a rent-to-buy, shared equity or leasehold arrangement.
Who the PHO fund helps
The PHO fund can help:
- lower-to-median income households who are unlikely to be able to buy a home without a reasonable level of financial and non-financial support
- first-home buyers who can service a mortgage but don’t have a sufficient deposit
- households that have at or above median incomes but don’t earn enough to service a low-deposit home loan at current house prices.
It aims to increase home ownership for three priority groups:
- Māori
- Pacific peoples, and
- families with children.
Eligibility
Applicants must:
- be legally able to buy a home in New Zealand (or be married to, or in a civil union or de facto partnership with someone who is legally able to buy a home in New Zealand)
- have a household income before tax of no more than $150,000 (except for multi-generational households (a household that normally lives together and is made up of either three or more generations (e.g., grandchildren, parents and grandparents living together) or two generations with multiple related family units (or cousins living together with their families) or larger whānau of 6 or more who normally live together)
- be a first homebuyer or a second chancer (someone who has owned a home before but is back in the same financial situation as a first-time buyer e.g. due to a divorce).
Applicants must also commit to living in the house as their main place of residence for at least three years i.e. they’re not buying it as an investment property.
As well as this general eligibility criteria, PHO providers can also apply their own criteria.
How to buy a home through the Progressive Home Ownership Fund
Individuals and whānau can buy a home through a programme managed by an approved PHO provider.
First Home Partner with Kāinga Ora – Homes and Communities
Please note due to high demand, the First Home Partner fund is now fully subscribed and is currently not accepting new applications.
|
Total number of homes contracted |
Number of homes settled |
Kāinga Ora (First Home Partner) |
1,184 |
1,156 (as at 31 August 2024) |
Te Aho Tāhuhu webinar series (December 2021)
A series of 10 webinars was produced in conjunction with Te Matapihi to discuss various aspects of the Progressive Home Ownership Scheme.
Watch the webinars on the Te Matapihi website(external link)
Progressive home ownership is already helping families into their first homes
We have supported the following providers (as at 31 August 2024):
Provider |
PHO scheme |
Total number of homes contracted |
Number of homes settled |
Location |
Bridge Housing Charitable Trust |
Leasehold |
35 |
16 |
Cambridge, Waipā, Te Awamutu |
Doing Good Foundation Limited |
Rent to Buy |
13 |
7 |
Tauranga |
Habitat for Humanity (Christchurch) Limited |
Rent to Buy |
2 |
2 |
Christchurch |
Habitat for Humanity (Dunedin) Limited |
Rent to Buy |
9 |
0 |
Dunedin |
Habitat for Humanity (Nelson) Limited |
Rent to Buy |
38 |
17 |
Nelson |
Habitat for Humanity Central Region Limited |
Rent to Buy |
46 |
25 |
Hamilton, Upper Hutt, Tauranga & Rotorua |
Habitat for Humanity New Zealand |
Rent to Buy |
10 |
1 |
Across New Zealand |
Habitat for Humanity Northern Region Limited |
Rent to Buy |
36 |
8 |
Pukekohe, Mangere East & Whangārei, Tikipunga |
Homes For People Trust |
Rent to Buy and Shared Ownership |
15 |
6 |
Palmerston North |
Ka Uruora |
Rent to Buy and Shared Ownership |
135 |
0 |
Taranaki, Okāto, Napier, Hastings |
Kaenga Hou Trust |
Rent to Buy and Shared Ownership |
20 |
0 |
Gisborne |
Manawa Community Housing Trust |
Leasehold |
20 |
6 |
Papamoa, Tauranga, Bay of Plenty |
New Zealand Housing Foundation (HF3 PHO Ltd) |
Shared Ownership and Rent to Buy |
223 |
68 |
Flat Bush, Mangere, Panmure, Tamaki, Papatoetoe, Ōmokoroa |
Ngāti Whātua Orākei Whai Rawa |
Shared Ownership (Leasehold) |
19 |
0 |
Auckland |
Ōtautahi Community Housing Trust |
Leasehold |
17 |
0 |
Christchurch |
Owhata Kōhanga Rākau LP |
Leasehold and Freehold |
37 |
0 |
Rotorua/Te Puke |
Penina Trust |
Rent to Buy |
9 |
4 |
Manurewa, Auckland Central |
Queenstown Lakes Community Housing Trust |
Leasehold and Rent to Buy |
116 |
64 |
Queenstown |
Tauhara North Kāinga Ltd |
Shared Ownership |
9 |
0 |
Koutu, Rotorua |
Te Arawa Lakes Trust |
Shared Ownership |
20 |
0 |
Rotorua |
Te Ranga Mārō - Te Tihi o Ruahine |
Rent to Buy |
15 |
0 |
Palmerston North |
Te Runanga o Kirikiriroa |
Rent to Buy |
27 |
0 |
Hamilton |
Te Rūnanga o Ngāi Tahu |
Shared Ownership |
8 |
4 |
Christchurch |
Te Rūnanga o Toa Rangatira Inc (Toa Rangatira Trust) |
Leasehold |
24 |
0 |
Titahi Bay |
Te Taiwhenua O Heretaunga |
Shared Ownership |
11 |
0 |
Waingākau |
Te Tumu Kāinga |
Shared Ownership |
15 |
0 |
Mangere |
Whaakatu Whānaunga Trust |
Rent to Own |
8 |
0 |
Ōpōtiki |
You can track the progress of the PHO Fund in contracting and placing families in to their homes through our Housing Dashboard.