Labour proposes rent-to-buy plan for public housing tenants

Labour has proposed a rent-to-buy scheme that would help public housing tenants save towards buying the homes they live in. Under the plan, tenants would receive $100 a week towards a deposit. RNZ reported the proposal on 27 October 2026.

The scheme would be open to working tenants in Kāinga Ora homes, the government agency that manages state housing. It would also cover participating community housing properties. Community housing providers would choose for themselves whether to take part.

Each tenant would receive a $100 weekly credit, which adds up to $5,200 a year. The credits would be held in a trust account. Tenants could later buy the home they are renting, at a price set by an independent valuation.

Labour has also proposed expanding the First Home Loan scheme, which helps people buy their first home. The proposal would raise the income limit to $300,000 and allow purchases with a 5% deposit. Tenants could combine the rent-to-buy scheme with the expanded First Home Loan to buy with that 5% deposit.

Labour has pledged to build three new public homes for every Kāinga Ora property sold through the rent-to-buy scheme.

The government's own plans for Kāinga Ora also involve sales. According to a Kāinga Ora plan reported by the NZ Herald, the agency would sell 900 older homes a year, with new builds ensuring there is no net reduction in state houses.

Home ownership is not new to state tenants. Kāinga Ora already offers a Tenant Home Ownership grant of 10% of the purchase price of selected houses, up to a maximum of $20,000. In the early 1950s, the National Government introduced policies to encourage state tenants to buy their homes, according to Kāinga Ora's history of state housing.