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RBA rate cut to help spur housing recovery

Swift action by the Commonwealth Government on a suite of policy initiatives can position Australia’s cities, economy and housing markets for sustained prosperity, according to the Urban Development Institute of Australia (UDIA).

UDIA National has today released a post-election action plan entitled Building A Better Australia that outlines six policy priorities across population, cities, infrastructure, housing, tax and regulation.

UDIA National Executive Director Connie Kirk says the plan presents a blueprint for policy priorities that can enhance the global competitiveness of Australian cities.

“There is clear goodwill towards a government re-elected through the prism of its pro-growth and aspirational agenda,” says Ms Kirk.

“The optimism they are generating is giving hope to everyone interested in a robust economy and recovery in housing construction, which are directly linked.

“We are also witnessing improved access to housing finance, courtesy of the Australian Prudential Regulation Authority’s (APRA) intention to ease interest rate loan assessment levels for Banks and the Reserve Bank of Australia (RBA) and policies like the promised scheme to close the deposit gap.

“There is now a real window in which we can seize the momentum and press on with policies that will boost the productivity, liveability and affordability of our cities.”

The six-point plan promotes six ideas to cement the benefits of reform:

Entrench the emerging new policy framework to get population settings right

Create a Bi-Partisan Infrastructure Accord to deliver long term certainty in planning and delivery

Audit the current infrastructure pipelineto assess opportunities for better alignment of infrastructure planning and land release

Properly design and fund the new mandate on housing supply, demand and affordability

Identify short, medium and long-term steps to reform and strip back taxes on new housing

Commence a review of environmental planning practices.

Ms Kirk says UDIA National will be moving quickly to engage with the re-elected Government, as well as the Opposition, to promote the policy platform.

UDIA National has already commenced initial briefings with the Government – having already met the Minister for Population, Cities and Urban Infrastructure, The Hon Alan Tudge MP, last week.

“The priorities we’re promoting have a dual benefit – giving a kickstart to housing construction in the short-term, as well as entrenching ideas that have a long-term, linked and lasting dividend.

“Population policy and analysis can inform the choices we make about the design and infrastructure of our cities, as well as long-term land use strategies to deliver housing supply and diversity.

“We also need to recognise that reforms to the taxation and regulatory burdens placed on housing construction take time to entrench, so triggering the start of changes now makes sense,” says Connie Kirk.

A full copy of Building A Better Australia is available via the UDIA website:

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