The federal government’s HomeBuilder grants program is being extended for three months, which is expected to see a further 15,000 homes approved under the scheme by March next year.

Cabinet Minister David Littleproud has confirmed the extension, saying the program has been a “real success story”.

“It is having a significant impact on getting us out of this COVID recession,” he told Sky News’ Sunday Agenda.

He said under the program, which assists home builders and renovators, there has been a 20 per cent increase in dwelling approvals.

“There has been 27,000 dwellings that have been approved under this and there is another 15,000 we anticipate under this (extension),” Mr Littleproud said.

“We’ll continue to monitor, not only this program but others as we move through the next year.”

News Corp newspapers say the value of the grant will decrease from $25,000 to $15,000 but the price cap for new buildings in NSW has been increased from $750,000 to $950,000 and in Victoria from $750,000 to $850,000.

Labor’s housing spokesman Jason Clare said these changes will help but they are still not enough to stop the housing construction industry shrinking.

He said last financial year 170,000 homes were built across Australia, while this financial year the Housing Industry Association predicts as few as 150,000 homes will now be built.

Treasury is currently forecasting only 140,000 homes will be built.

“These changes to the HomeBuilder Scheme are too small to bridge the difference,” Mr Clare said in a statement. “More needs to be done to save tradies’ jobs.”

-AAP