The rental property market has taken another blow, with figures released by ABS showing that investment housing loans dropped 7.4 percent for the month of November.
These figures are worrisome, according to Housing Industry Association (HIA), chief executive, Chris Lamont who believes that this will have a severe impact on the rental market and could lead to rent prices being pushed up.
“The fall in investment loans for new housing provides some real concern for the state of the private rental market. Australia’s population is growing and unless we boost the supply of new homes, we can expect lower vacancy rates and further price pressures.”
Investment home loans have dropped 33 per cent over the last 12 months, with just 5994 new loans approved in WA in November, a fall of 5.8 percent on October, according to ABS data.
The HIA has called on the Government to boost investment in affordable accommodation, starting with expanding the National Rental Affordability Scheme. Under the scheme, applicants are eligible to receive a National Rental Incentive for each approved dwelling, on the condition that they are rented to eligible low and moderate income households at 20 percent below market rates. HIA believe that more can be done to save the property market such as doubling the depreciation allowances and providing incentives for investments in new energy efficient dwellings.