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Stemming the exodus of first home buyers from the market

1 Aug 14

The Real Estate Institute of Australia (REIA) says all levels of Government must work together on housing affordability and stemming the exodus of first home buyers from the Australian residential market.

The comments were made by REIA CEO Amanda Lynch at the Senate Economics References Committee Inquiry into Affordable Housing at Parliament House in Canberra.

Ms Lynch said, “We have seen home ownership in Australia fall and first home buyer numbers at near historic lows. Governments at all levels must address structural factors that reduce the responsiveness of supply to demand.”

“Projections from REIA’s recent roundtable at Parliament House showed the cumulative housing shortage is likely to increase from 100,000 dwellings in 2006 to 375,000 in 2015.”

“Studies have found that the stability associated with home ownership ultimately contributes to positive social outcomes, such as improved education levels for children, better mental and physical health, and greater social connectedness and participation in local community and voluntary organisations,” Ms Lynch concluded.

REIA’s Housing Affordability recommendations include:

  • That all states and territories recommit to the IGA which states that assistance to first home buyers should be across the board for new and established homes.
     
  • That the Commonwealth Government assess the various international schemes that assist first home buyers, including the release of superannuation, and replicate those successes in Australia.
     
  • That negative gearing be retained in its current form for the purpose of property investment to underpin the viability of the rental sector.
     
  • That conveyance stamp duties be abolished and replaced by an efficient source of revenue for states and territories.

 

The full submission can be found here.

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