This research looks at Australian shared equity schemes, which are programs where governments or other organisations help people buy a home in exchange for part-ownership of the property. It compares the advantages, disadvantages and unintended consequences of different models, and creates an evidence-base to support the design of future government-led shared equity programs. 

With more people struggling to buy their first home, federal, state and territory governments are increasingly adopting shared equity schemes to help Australians purchase a property. Ensuring these schemes are well designed and easily understandable can help ensure they are fit-for-purpose, maximise desired outcomes, and avoid unintended consequences like house price inflation.

Key findings

• Most shared equity schemes impose eligibility criteria on applicants.
• Schemes are less effective in more expensive cities. Many schemes underestimate affordability challenges for homebuyers in major capital cities.
• There are several obstacles that can inhibit shared equity schemes growing and taking on more customers.

Key policy actions

• Simplifying scheme design and process.
• Enhancing consumer understanding.
• Creating advice services and tools to assist with long-term planning.
• Setting market-sensitive property price thresholds.
• Exploring new methods of funding.
• Filling data gaps for customers and providers.
• Independent monitoring.