Labor blasted as plunging house prices leave first-home buyers exposed

Sky News host Chris Kenny accuses Labor of wrecking the housing market, warning falling home prices, higher interest rates and broken promises have left many first-home buyers at risk of negative equity. “Labor come in promising to give people more stuff, they wreck the budget and the economy, and then the Coalition has to come in and clean up the fiscal and economic mess,” Mr Kenny said. “They've helped first home buyers get into the market with just a five per cent deposit by getting the government to guarantee the loans. “That was last year, and since then the government has continued with its broken promises on negative gearing and capital gains tax and insisted it will not drive house prices down. “Fast forward to today and with the government failing to control its spending, failing to control inflation, and seeing interest rates go up again, at the same time it's increased taxes on housing investment. “Well, prices have dropped, of course, right around the country, in every state; prices have fallen; your house is worth less. “With markets falling, people on this scheme might already be in negative equity. “This is a deep worry. Especially when the sustainable way to make houses more affordable, that is increasing supply, the trend is all wrong too. New building approvals have fallen for the third month in a row. Experts are worried.”