HIA welcomes doubling of Tasmanian First Home Owners Grant

The Housing Industry Association (HIA) has welcomed the introduction of doubling the First Home Owners Grant by the Tasmanian government.

HIA executive director Stuart Clues says that this is a real boon for the real estate construction industry in the state.

"It has been a rough couple of years for the Tasmanian residential construction industry with the loss of over 3,000 jobs and 1,000 home projects this year alone.

"The state government's announcement today could be the adrenalin shot in the arm the industry needs to start rebuilding in 2013."

He added that his association is fully behind making the grant only available to the purchase of new homes rather than existing dwellings.

Mr Clues mentioned that economists are critical of the stimulus plan being applied to properties because all it serves to do is to drive up prices of current homes.

It is expected that doubling this scheme will see 500 new pieces of real estate being built across the state for young residents.

The executive director said that this will provide wide reaching positive effects including how constructing a home benefits 30 small businesses like plumbers or electricians. In addition, it will increase affordable real estate across Tasmania and will reduce the pressure on the rental market.