Senate Inquiry gets the nod from peak body

Lending is in the spotlight after some heat was applied to the Senate by independent members of Parliament moving for housing to be treated as a human right for every Australian.

The Senate has now voted for a new inquiry to examine how Australia’s financial regulation can drive home ownership.

To be undertaken by the Senate Economics References Committee, with a mandate to explore ways to reduce lending costs and improve accessibility for first home buyers, the inquiry will hear from Australian borrowers, the market, and the Australian Prudential Regulation Authority.

The Housing Industry Association (HIA) welcomed the announcement of an inquiry examining how Australia’s financial regulations are impeding young Australians from getting into home ownership and to explore ways to reduce lending costs.

HIA managing director Jocelyn Martin said over the past two decades, the rate of home ownership had declined and was at worrying levels.

“This is particularly concerning for those under 40, with the home ownership rate of 30–34 year olds less than 50 per cent and those aged 25–29 just 36 per cent.

“This reinforces that it has become increasingly difficult, if not impossible in most circumstances, for young Australians to get into home ownership.

“The situation places further pressures on the rental market and subsidised housing options which is not a sustainable housing model for Australia.”

HIA recently called out the need for a policy reset to prioritise housing supply across all forms of housing so as to put downward pressure on housing affordability and rental prices.

The HIA have been advocating for appropriate and proportional financial and lending regulations that look to support, not impede, people to access finance for housing and home ownership.

“Housing preferences and the expectations that people have for their housing have changed in response to the scarcity of housing and rising costs, however the ‘Australian Dream’ of owning your own home remains,” Ms Martin said.

“We should expect our institutions to better serve the aspirations of individual Australians.”

Previous polling conducted for HIA found 81 per cent of Australians believe everyday Australians should be able to own their own home.

The research found 92 per cent of renting households aspire to own their own home, yet only 49 per cent of these households felt they would achieve this aspiration.

Ms Martin said access to finance for a deposit was the biggest obstacle for Australians trying to buy their first home, especially those paying rent while saving for their deposit.

“Given the current housing challenges, HIA believes that when it comes to getting first home buyers into a home, all options need to be on the table and ensuring housing policies can respond to changes in a timely way should be the basis for all government actions that influence the housing market.

“We are looking for this inquiry to identify those financial and regulatory impediments that are holding back young Australians and identify new measures to ensure that home ownership can remain an achievable goal for everyday Australians.”

The critical issue of housing affordability and adequate housing supply have been at the forefront of the political agenda in recent months.

ACT independent Senator David Pocock and North Sydney federal member Kylea Tink introduced a private members’ bill into the Senate and House of Representatives that would require adequate housing to be treated as a human right for every Australian by mandating that the federal government make a long-term plan to transform Australia’s housing system.