Loans to first home buyers increased 38 per cent on the previous year, according to HomeStart report figures for the 2022-2023 financial year.

In total, HomeStart provided 2046 home loans in 2022-23, which Mullighan said was another decade-high figure.

“Low deposit loans through HomeStart are making a real difference, helping lower-income South Australians achieve the home ownership dream, even while interest rates are increasing,” he said.

“We know for many young South Australians home ownership has never felt further from reach; HomeStart is helping to get it back within their grasp.”

More than 1000 loans were provided to single-income households, up 44 per cent increase on the previous year.

Three-quarters of HomeStart’s loans went to households on income levels that would make them eligible for affordable housing.

HomeStart reported a more than 50 per cent increase in inquiries for new loans in the weeks following the State Budget in July.

The budget included the abolition of stamp duty for first-home buyers planning to build a new home in South Australia up to a value of $650,000.

“Like the rest of the country, SA has a really struggling housing market, we have a rental vacancy rate at the moment of 0.4 per cent,” Mullighan said.

“The rental market is very tight, that means there is a lack of supply of all rentals but it also means there are a dwindling number of homes that are available at an affordable price.”

HomeStart provides home loans to lower-income South Australians where many do not qualify for home loans from traditional lenders, providing low-deposit loans without charging expensive lenders’ mortgage insurance.

Since 1989, HomeStart has helped more than 83,000 people buy their own home, with this year more than half aged under 40, and a median customer income of $68,000.

Another recent change at HomeStart was the reduction in the deposit on graduate loans with a 2 per cent deposit, and changes to shared equity.