Owner occupier finance drop for May but industry upbeat

Home Media Releases Owner occupier finance drop for May but industry upbeat

Owner occupier finance drop for May but industry upbeatDespite a drop for May, lending finance for owner occupation continues to provide the base of new home construction into 2016 according to the release of latest ABS Lending Finance figures today.Lending finance for the owner occupation housing fell in seasonal terms by 5.3 per cent on the previous month. Despite the drop for May there was a 9.2 per cent improvement nationally for the 12 months to the end of May 2015 on the previous year.The Property Council of Australia’s Executive Director Residential, Nick Proud, said these figures are further evidence of a strong industry. “Despite a drop in lending finance in May, the full year result is still strong and residential development activity should continue to remain at peak levels throughout 2015 and into 2016,” said Mr Proud.”This is at a time of unprecedented low interest rates by the Reserve Bank of Australia that should drive continually high lending finance figures and eclipse current record levels in housing construction.”But we can’t afford to see growth stall in this key sector of Australia’s economy: the ramifications on employment, housing affordability and government revenue would be extremely concerning.”But it is important for governments to not take these record figures for granted and continue to focus on supply side efficiencies in land release, improvements to development assessment and reform of inefficient taxes such as stamp duty to create prosperity, jobs and strong communities.” Media contact: Matt Cross | M 0402 155 372 E [email protected]