Changes to the First Homebuyer Guarantee will mean more buyers will now be able to access more of the market.

Currently, the scheme allows first homebuyers to purchase a property - capped at a certain price, which in Launceston and the rest of the North East is $450,000 - with a five per cent deposit and removes the lenders' mortgage penalty.

The federal government will change the scheme - one of its election commitments - by removing the limit on how many people could use it each year and lifting the eligibility caps on home prices.

The changes were originally slated to land in January 2026, but have been brought forward and will come into effect on October 1.

In Tasmania's North east - Including Launceston - the cap will be increased from $450,000 to $550,000.

So, what suburbs will you be able to buy into from October 1?

Town & Country Real Estate Tasmania's Kyle Barrett said the increase will give first homebuyers access to parts of Launceston previously unreachable.

He said with the previous cap of $450,000, first homebuyers were restricted to Launceston outskirts, Mowbray, Ravenswood and Waverley, where the median value for homes sits between $377,000 to $437,000 according to Cotality.

Now they will be able to access areas like Summerhill, Youngtown and Kings Meadows, where, according to Cotality, the average home values range from $454,000 to $539,000.

There are currently 966 properties listed for sale or expression of interest in Launceston.

According to Cotality, 266 of those are listed for $450,000 and below.

When the cap is lifted to $550,000, that number would increase to 472.

Since September 4, 2024, there were 375 properties sold in Launceston that were priced between $100,000 to $450,000, and 682 dwellings sold from $100,000 to $550,000.

Cotality Australia's research director, Tim Lawless, expects the scheme to be very popular.

"The activity is going to be concentrated around the caps, or below," he said.

20 Harold Street, Kings Meadows, TAS 7249

Located on a quiet street, this Kings Meadows home is currently listed for offers over $540,000 with Living Here Launceston.

A short walk from the Kings Meadows shopping precinct, it has three bedrooms, one bathroom and two parking spaces.

16 Warwick Place, Kings Meadows, TAS 7249

Built in 1957, this Kings Meadows home is hidden in a quiet cul-de-sac.

The three-bedroom home is currently listed for offers over $539,000 with Key2 Property, and has one bathroom and three parking spaces.

79 Hobart Road, Kings Meadows, TAS 7249

Another Kings Meadows home, listed between $469,000 $499,000 with Ray White, is located close to the main shopping strip and the Meadow Mews shopping centre.

The home includes two bedrooms, one bathroom and one parking space.

5 Mimosa Place, Youngtown, TAS 7249

Recently refreshed, this Youngtown home is listed for offers between $495,000 and $555,000 by Parry Property.

The three-bedroom home is elevated and offers views across the city, and is close to Kings Meadows High School, walking tracks, cafes and the Meadow Mews Shopping Centre.

1/17 Guy Street, Kings Meadows, TAS 7249

With the listing saying the home is "renovated from top to toe", this four-bedroom home is currently listed for offers over $495,000 by Harrison Agents.

Mr Barrett said despite the market opening up for first homebuyers, the best value for money still presents itself in regional towns like George Town, Beaconsfield and Beauty Point.

"These areas not only offer more house for your money, but they're still within a comfortable commuting distance to the Launceston CBD," Mr Barrett said.

The average house price in George Town, Beaconsfield and Beauty Point ranges from $392,000 to $417,000.

Mr Barrett added that those looking to break into the market haven't missed the boat yet, but he does expect prices to rise.

Mr Barrett attributed this to strong demand and a lack of supply, matched with an increase in interstate investment interest.

Harcourts real estate agent David Hernyk also said this was the case, with an anecdotal increase in interstate investment interest, but said the government incentives would drive house prices up quickly.

"Most investors are trying to get in now before the scheme is available to first home buyers, because we'll just see those prices lift," he said.