Home Lending on the Up

According to the Housing Industry Association (HIA), the number of loans for new dwellings has risen for nine consecutive months, pointing to a modest recovery emerging for residential construction. New home lending figures are in contrast to the surprise negative building approvals figures for May and show that the housing sector continues to be buoyed by the first home buyers grant and low interest rates.

First home buyer activity continues to be a key feature of strength in housing finance, with a most pleasing return of investors for the construction of new rental dwellings.