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Roundtable group commits to affordable housing The Real Estate Institute of Australia (REIA) hosted a roundtable discussion on March 26 on housing affordability. The roundtable featured government and industry leaders from real estate, construction, finance and community sectors, sponsored by Genworth. ‘Access to affordable housing is a goal that is shared by the government and all sectors of the community,’ the participants said in a joint communiqué. ‘A lack of affordable housing impacts on the functioning of the economy as well as the wellbeing of individuals and the cohesiveness of communities and society. ‘With first home buyers finding it increasingly difficult to enter the housing market; home ownership in Australia is declining after four decades of stable levels. ‘In November 2013 the proportion of first home buyers in the total number of owner-occupied housing finance commitments dropped to its historically lowest point. First home buyers currently face significant challenges accessing affordable housing. This suggests a need for policy makers to address the issue. ‘The minister for social services Kevin Andrews confirmed the coalition’s 2013 election policy – acknowledging the importance of addressing housing affordability – and indicated his willingness to work closely with states and territories and stakeholders in seeking a solution to the challenges facing would-be home buyers. ‘As industry leaders, we acknowledge affordable housing is a complex issue, with a number of economic, social and infrastructure factors influencing the issue. These include: the
deposit gap for prospective first home buyers; demographic change; the effect of stamp duties and taxes; insufficient supply of dwellings for both purchase and rental; land release and planning processes, and, importantly, a lack of urban infrastructure. ‘One of the factors highlighted at the roundtable as a major driver of increasing house prices and declining affordability is the undersupply of housing. This was identified as a priority policy issue. ‘Supply has been unable to keep pace with demand owing to a number of reasons: land availability; zoning policies, length of planning processes and environmental regulations. Furthermore,
Housing approvals remain strong: NSW govt Housing approvals in NSW remain strong with 4,442 homes approved in February – great news for the NSW economy and homebuyers, according to planning and infrastructure minister Brad Hazzard. ‘Housing approvals in NSW have continued their upward trend with the last 12 months the best since July 2004,’ Mr Hazzard said in a media release. ‘The 12 months to February 2014 saw 49,236 new homes approved in NSW. ‘Since the Liberal and Nationals government came to office there has been a marked upward trend in housing approvals.’ The figures released last week by the Australian Bureau of Statistics show that NSW approvals for February are up 42 per cent on the 5-year average from March 2009. Key figures:
• 4,442 dwelling approvals in February 2014 • 49,236 new houses approved in NSW in the 12 months to February 2014 • Since the Liberal and Nationals government came to office, monthly approval figures have averaged 3,377 dwellings (April 2011 to February 2014) compared to 2,657 per month on average over the last five years of Labor. ‘Targeted NSW government policies to increase housing supply and build confidence are driving the best performance in the housing approvals in NSW in a decade,’ Mr Hazzard said. ‘NSW continues to outperform the other states – which is great news for homebuyers and shows that business and consumer confidence is returning to the state. ‘We will continue to make changes that bring confidence to the housing industry and to deliver for the people of NSW.’
unless supply is addressed the gap between supply and demand would significantly widen by 2015. ‘Taxes at local, state and the Commonwealth level were also identified as one of the important factors determining housing supply and influencing housing affordability. Negative gearing in its current form plays an important role in addressing the supply of rental accommodation. ‘State-based stamp duties discourage turnover of housing. This not only inhibits labour mobility but also distorts choices between renting and buying. Stamp duties act as a disincentive for the ageing population to downsize. These distortions lead to suboptimal outcomes and reduced investment in the property market. ‘It was suggested that greater consumer awareness and government support of lenders’ mortgage insurance and enhanced competition among lenders would drive product innovation, especially focused on prospective first home buyers, and would be facilitated through a strong securitisation market. Additionally, options to unlock the potential of shared equity as an alternative form of housing finance should be considered. ‘As industry leaders we believe what is now needed is meaningful action. We welcome dialogue with the minister and the federal government’s commitment to take a leadership role in developing a coordinated and strategic approach with all levels of government to the provision of housing. ‘We are committed to working with the government to achieve these goals and to ensure that complementary policies, covering among other things first home buyers, taxation and supply, are in place to achieve this.’
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44 April 8, 2014 The Byron Shire Echo
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