KiwiBuild comes to the New Plymouth suburb of Marfell.

The Government is upping the price cap for two housing programmes outside the main centres to bring them in line with KiwiBuild price caps.

The Welcome Home Loan and HomeStart Grants can now be used to buy newly-built homes for up to $500,000 over the entire country, not just in the main areas. This is a shift from a $450,000 cap previously.

The Welcome Home Loan allows first-home buyers making up $130,000 a year as a couple or $85,000 or less as an individual to buy a house with a 10 per cent deposit instead of the industry standard 20 per cent. The HomeStart grant gives buyers up to $20,000 of help in getting that deposit.

ROSS GIBLIN/STUFF Housing Minister Phil Twyford, pictured with fellow minister Julie Anne Genter, has raised the price cap for the programmes outside of the main centres.

While major centres like Christchurch and Wellington already have a $550,000 cap for new builds the areas surrounding them generally do not.

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The change brings both programmes in line with the KiwiBuild price cap of $500,000 for homes outside of Auckland or Queenstown. All KiwiBuilds will qualify as new builds.

The caps for existing homes and homes within Auckland and other main centres have not been shifted.

So far almost two-thirds (60 per cent) of KiwiBuild buyers earn below the caps required to use the scheme. The Government expects the change will result in about 230 more HomeStart grants a year and 10 more Welcome Home Loans.

"The cost of this increase is estimated to be around $3 million per year, which will be funded within the existing KiwiSaver Deposit subsidy and Housing New Zealand budgets," Housing Minister Phil Twyford said.

"This increase is part of a Government review of home‑ownership products to better align with KiwiBuild, support more house building and help families own their own homes."

"Aligning the price caps so they are the same as the KiwiBuild price caps across the country means first home buyers can take advantage of the grant and loan for KiwiBuild, if they meet the eligibility criteria."

The Government has long-signalled such a change, but could have been hurried into the move by the lack of appetite for KiwiBuild homes in some areas.

Just seven of 10 KiwiBuild homes in Wanaka were purchased during the first ballot round, and some properties in the Onehunga development have also not been immediately sold.

HomeStart Grant applicants must have been contributed to KiwiSaver for at least three years and can receive additional funding for every year over that amount.

The Welcome Home Loan changes will likely have less pickup as several banks are already offering low-deposit loans for KiwiBuild properties.

KiwiBuild is the Government's promise to build 100,000 affordable homes over 10 years, with half in Auckland and the other half elsewhere. Thus far 33 have been built.