First home buyers at decade low as investor finance fall continues 

The number of first home buyers has fallen to the lowest level in over a decade according to the latest ABS Housing Finance data released today, underscoring the need for tax reform.

Property Council Executive Director Residential, Nick Proud said stamp duty is a major barrier for home buyers and harmful to the economy.

“Australia’s federal, state and territory leaders and treasurers must consider the harmful impact inefficient and economically damaging taxes like stamp duty are having when they meet over the next two days,” Mr Proud said.

“Stamp duty is bad for housing affordability and holds back the economy as new research from Deloitte Access Economics demonstrated today.

“First home buyers now account for only 15.1 per cent of all housing finance, the lowest level since June 2004.

“The patchwork of first home owner incentives is not enough to overcome the barrier stamp duty creates and do nothing to address the broader economic drag it inflicts. Stamp duty simply must go.”

The ABS data also revealed a further drop in investment loans for the month of October of 6.1 per cent in seasonal terms.

“Macroprudential measures are slowing up investment housing finance to record the lowest total since July 2014,” Mr Proud said.

“The key now is ensuring that macroprudential measures don’t go too far and decrease the amount of rental stock entering the market, which would place upward pressure on rents.

“The drop in investment finance is being replaced to some extent by owner occupiers who are responding to low interest rates, good volumes of supply coming on line and reasonable price growth.”

Media contact:  Fiona Benson  |  M  0407 294 620  |   E  [email protected]