The First Home Owners Grant will increase from $10,000 to $20,000 for homes valued up to $750,000 in regional Victoria.

The grant increase will take affect from 1 July and is expected to assist around 6,000 first home buyers across the state.

The new grant does not apply to already built homes.

However, new houses, units and apartments are applicable until 30 July 2020.

First Home Owner Grant to double for buyers in regional Victoria https://t.co/gj8An4JNxW pic.twitter.com/utaqHtiaXc

— Connor L James (@ConnorLJames) March 2, 2017

These changes are expected to increase the uptake of the first home buyers grant, which dropped to its lowest point in more than a decade in 2014-2015.

The grant was increased in a bid to promote decentralisation and create appeal for young people to live outside of Melbourne.

Areas with access to the grant include suburbs in Melbourne’s outer north, north-west and south-east.

Victorian Treasurer, Tim Pallas, told ABC News that doubling the grant would encourage young people and families to move into regional areas.

“Decentralisation is a vital part of our agenda. You can’t decentralise unless you provide people with housing opportunities and you make housing affordable,” he said.

In a media release issued today, Premier Daniel Andrews also praised the changes to the grant.

“By doubling this grant, we’re giving young people in regional Victoria even more reason to live locally,” he said.