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The ABS released the Lending to Households and Businesses data for October 2021 today. The publication presents statistics on housing finance commitments including for the purchase or construction of new dwellings.
“Despite this near record level of investor activity, they accounted for a relatively modest 33 per cent of the total lending in October. This is well below their peak of activity in the market in 2015 when they reached 46 per cent of the value of lending,” added Mr Devitt.
“The continued strength in the owner-occupier market means that investor activity does not warrant a return to punitive restrictions on investors.
“Lending to first home buyers also remains elevated. The number of loans issued to first home buyers in October was 32.9 percent higher than the average of the past decade. Despite this strong involvement of first home buyers, they are continuing to decline as a share of the market, as the impact of HomeBuilder erodes.
“The total value of lending for housing in October 2021, remains higher than any month pre-HomeBuilder. In the three months to October, the value of lending for housing was 38.1 per cent higher than at the same time in the previous year.
“This ongoing loan issuance continues to confirm that detached home building will remain elevated throughout 2022.
“The boom in renovations also looks set to continue with lending for renovations in the three months to October higher by 108.0 per cent compared to the same quarter in the previous year,” concluded Mr Devitt.
The ACT Government has released a consultation paper exploring the extension of occupational licensing to additional construction trades.
The Housing Industry Association (HIA) is calling for a unified national framework for granny flats and secondary dwellings to ease the housing affordability squeeze - arguing that we could learn from recent changes in Tasmania to permit up to 90 per square metre granny flats and our neighbours in New Zealand who are now fast-tracking compliant small homes.
The Housing Industry Association (HIA) has lodged a major submission calling for a comprehensive overhaul of the National Construction Code (NCC), warning that excessive regulation and complexity is slowing the delivery of new homes across Australia.
HIA is aware that industry is raising concerns about price increases to fuel and materials arising from the conflict in the Middle East. To assist members to account and respond to price increases we have prepared information on dealing with cost uncertainties and fluctuations under HIA contracts.