Rate cuts 'could make it harder for renters to buy a home'

Monday 08 October 2012

Article by Mozo

The latest round of interest rate cuts has provided a degree of relief for current mortgage holders, but leaders at Australians for Affordable Housing (AAH) feel that the move may make it even harder for people to buy a home.

Experts are predicting that rate reductions will stimulate activity in the property sector and this – the AAH believes – will result in prices going up.

The organisation's campaign manager Sarah Toohey thinks that first-time buyers will find it more difficult to secure a home.

She stated that a national housing plan is needed to make property more affordable across the board.

"Interest rate cuts also don't solve the housing problem for the 25 per cent of renters in housing stress," Ms Toohey remarked.

One of the country's biggest problems is an apparent dearth of new housing developments, which means property buyers have a very limited selection to choose from.

Groups like the Housing Industry Association have been urging the government to take action to boost property building activity for quite some time.

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Rate cuts 'could make it harder for renters to buy a home'

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