350,000 Households Rescued From Mortgage Stress

HIA Chief Executive of Policy, Chris Lamont said that the drop in mortgage stress was a welcome boost to housing affordability and provides a much needed lift to the fortunes of Australian households for what is expected to be a tough 2009.

The easing of mortgage pressure has been felt right across Australia with all areas experiencing a significant easing in mortgage stress over the last four months.

“While these numbers are welcome relief for households, weaker employment prospects in 2009 could undo this good news,” Mr Lamont said.
HIA has stressed the interest rates alone are not a long term solution for housing affordability and that more needs to be done in the areas of investment in infrastructure necessary to support residential development.

“There is also an urgent need to look at restrictions on the availability of finance, which are holding up thousands of new dwellings across Australia. Credit rationing is playing havoc with some sections of the industry. If the industry can get more ready access to finance both production and employment will be significantly strengthened in 2009,” Chris Lamont said.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.