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Housing legislation urgently needed as first-home buyer loans drop

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The Real Estate Institute of Australia (REIA) has called for immediate passage of the federal government’s housing legislation to address Australia’s worsening housing affordability crisis.

REIA President Leanne Pilkington urged Parliament to pass the bill without delay or amendment, emphasising the need for cross-party support.

“The ongoing delay is counterproductive and will exacerbate the housing crisis. First-home buyers and renters are the ones suffering most from this inaction. The longer we wait, the worse it becomes,” Ms Pilkington said.

The call comes as new data revealed a 1.5 per cent drop in loans for first-home buyers, highlighting the growing challenges faced by young Australians trying to enter the property market.

Ms Pilkington expressed concern over the declining trend in first-home buyer loans.

“The fall in first-home buyer loans points to the ongoing struggles faced by young Australians attempting to enter the property market. The strain on affordability, rising property prices, and higher interest rates are pushing home ownership further out of reach,” she said.

The REIA cautioned against potential changes to taxation arrangements, such as negative gearing and capital gains tax, warning that such alterations could further impact the rental market.

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Ms Pilkington argued that these proposals fail to address the core issue of housing supply.

“The Prime Minister himself acknowledged that supply is the issue, yet these tax changes do nothing to solve it. In fact, by adding pressure to rents, we’re keeping inflation higher and delaying much-needed interest rate relief,” she said.

According to the REIA, Australia is currently building only 160,000 homes annually, well below the 240,000 homes needed to meet the national target of 1.2 million new homes by 2029.

Ms Pilkington stressed the urgency of the situation, stating that without swift action, the housing crisis will continue to worsen.

The REIA, established in 1924, represents 85 per cent of Australian real estate agencies and serves as a national advocate for the Australian real estate industry.

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