Under the home guarantee scheme, buyers can secure a home with a deposit as little as 5 per cent of the funds required.

The expanded program will include 35,000 places per year for first home buyers from July this year, while an additional 5,000 places will be available for single parents allowing them to tap into the market with a 2 per cent deposit.

Regional Australians will also be able to access 10,000 regional home guarantees each year from October 2022 to July 2025.

The details of the expansion will be detailed in Tuesday’s budget.

Responding to the announcement, the Property Council of Australia urged the government to do more to tackle housing supply to address affordability issues.

Property Council of Australia chief executive Ken Morrison said today’s (28 March) announcement was a very positive measure to help more aspiring home buyers overcome the widening deposit gap.

“The Home Guarantee Scheme has been a successful program in helping eligible first home buyers get into the market, and it is welcome news to see its scope expanded so significantly,” Mr Morrison said.

“Bridging the deposit gap is a huge hurdle for many aspiring homeowners and this scheme helps people address this while being appropriately targeted.

“While we warmly welcome this scheme, it is a demand-side measure and won’t in itself do anything to ease supply-side pressures which are a main driver of affordability issues.”

The Property Council last week released fresh research showing that 70 per cent of Australians now believe the great Australian dream of home ownership is out of reach for most people. Additionally, 90 per cent of aspiring home owners said it’ll be one of the most important issues in deciding their vote at the federal election.