The State Government will cut the first home buyers grant by $5000 in the middle of this year in a bid to make Budget savings.

The Barnett Government last year announced an increase in the payment, from $10,000 to $15,000 for the whole of 2017.

But from July 1, that increase will be scrapped, a move that Treasurer Ben Wyatt says will save the Government $20 million.

Oliver Peterson asked Housing Industry Association WA Executive Director John Gelavis and Nicheliving Group Managing Director Paul Bitdorf for their reactions.

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