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Growth in home lending encouraging



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Media Release Geoff Prosser M.P. FEDERAL MEMBER FOR FORREST

S h a d o w M in is te r fo r Sm all Business, H o u s in g a n d Customs.

/S

22 July 1991

GROWTH IN HOME LENDING ENCOURAGING

Today's increase in housing finance was encouraging news for the national housing industry, according to the Federal Opposition.

According to the Australian Bureau of Statistics, secured housing finance commitments for owner occupied dwellings totalled $2.35 billion in May 1991, an increase of 27% over April 1991 and 21.1% over May 1990.

Shadow Minister for Housing, Geoff Prosser, said that lower interest rates and improved home affordability were bringing people back into the housing market.

"Anecdotal evidence has indicated a movement back into the housing market, particularly from first home buyers. Today's figures showing an increase in lending for housing confirms this."

Mr Prosser said that the 5.6% increase in lending for the construction of new housing was especially beneficial for the building industry.

"The building sector has been bouncing along the bottom of a trough for quite some time now.

"The increase in lending for new housing offers some hope for an increase in construction activity, which will be welcomed by builders."

However, Mr Prosser warned that full a recovery of the housing sector would remain constrained by still-low levels of consumer confidence.

"Growing fears of unemployment are also acting as a

disincentive to many would-be home buyers.

end

Contact: Karen Kuschert - 06 277 4717 06 286 5006

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH