The NSW government has announced that it will extend the first home buyers’ grant by another two years, entitling prospective home owners to a $15,000 inducement when purchasing a new house.

On Saturday, NSW Treasurer, Mike Baird, said the scheme had seen a 60% leap in grants in the first few months of 2013 compared to last year. The grant was due to drop to $10,000 next year, but will now be offered until 2016, under measures to be contained in next Tuesday's state Budget.

“As part of the Building the State package announced in last year's Budget,” says Baird, “the NSW Government more than doubled the First Home Owners Grant for new homes costing up to $650,000 to $15,000 and we are already seeing signs of life in the critical housing sector.”