Housing lending rose 1pc in August

Lending rises

Total housing loans rose 1 per cent in August to $30.4 billion.

Investment lending continued to rise, up 1.4 per cent to $11.7 billion.

Investor lending is up 34 per cent from a year earlier, and isn't too far off previous highs.

Source: ABS

The average loan size increased again, partly because lower income earners are locked out.

First homebuyer numbers remained solid - with deposits ably assisted by the bank of Mum and Dad - but the number of loans to buy newly erected dwellings fell 4.1 per cent. 

"Have banks de-risked too far? Let banks lend"

Research by Jonathan Mott at Barrenjoey shows that there's been a huge lift in the share of loans going to households with a household income of above $200,000, while lower income earners are shut out by the 3 percentage points lending assessment buffer.

In essence, housing credit is becoming the purview of the wealthy, as detailed in a paper submitted by Barrenjoey to the Parliament of Australia. 

One suggestion, from Dr Alex Joiner of IFM Investors among others, has been to reduce the 3 percentage points lending assessment buffer for first homebuyers only, rather than for all borrowers. 

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