Tasmanians will be able to take advantage of the state government's $20,000 first home builders grant for another year.
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Minister for Building and Construction Sarah Courtney announced on Sunday the government would be extending the grant in the upcoming state budget.
Ms Courtney said the extension would give Tasmanians a greater opportunity to own their own home, boost housing supply and complement the state's Affordable Housing Strategy.
"We understand that there is high demand for new housing, and the first home builders grant is one part of our multi-pronged approach to address housing stress in Tasmania," Ms Courtney said.
Matthew Pollock from Master Builders Tasmania executive director Matthew Pollock said the grant scheme does not only benefit first home home buyers looking to get into the market but also the building and construction industry.
"Over the last 12 months, one in five new homes were purchased by first home buyers, so this is important for jobs and building businesses," Mr Pollock said.
"Tasmania is one of the fastest growing construction markets in the country at the moment, so we are seeing growth across the state which is very encouraging."
According to the Australian Bureau of Statistics, Tasmania continues to lead the country in annual growth of building approvals with the number of dwellings approved growing 24.1 per cent in the 12 months to March 2019.
Mr Pollock said the grant program was significant because one of the greatest hurdles getting into the housing market is saving for a deposit.
"This particular grant accounts for about a quarter of the deposit needed on the average home in Tasmania. It can save somebody saving up to 12 months for that first home deposit," Mr Pollock said.