YOUNG people in NSW will struggle to buy property with state government cuts to the first home buyers grants effectively locking them out of the market, the state opposition says.
Monthly loan figures for October, from the Australian Bureau of Statistics, show about seven per cent of loans taken to buy property were from first home buyers, shadow treasurer Michael Daley said.
In October 2010, the figure was around 17 per cent, he added.
"The disappointing figures follow (Premier) Barry O'Farrell's decision to dump the $7000 First Home Owner Grant and end stamp duty exemptions worth up to $17,990 for first home buyers purchasing existing homes," Mr Daley said.
"Instead, the government's New Home Grant Scheme has paid 9802 grants to property investors and existing home owners buying a second property - further putting first home buyers out of the market."
Under the changes, taxpayer's money is "assisting property speculators", Mr Daley said.
Comment is being sought from the government.
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