Bank on leaders working together for affordable homes

Recent interest rate hikes demonstrate the increasing need for Governments and the Big Four Banks to work together to address the key issues of supply and demand and housing affordability.

The endless rounds of ongoing debates need to stop and the banks and government need to start communication if they hope to stop the spiraling downward cycle.  They are the ones with the power to fix up the property market problems and they need to stop taking with one hand while giving with the other, and start talking with each other.

The Property Market is suffering from an undersupply of stock which is making housing affordability even more elusive.  They need to look at influencing affordability and supply by reducing or abolishing stamp duties, abolishing exit fees, introducing more competition into the banking sector and looking at policies that will stimulate the construction industry.

Not even the prospect of a Senate enquiry into banking competition, the abolishment of exit fees, portable bank account numbers, or Parliamentary debate on legislation forcing banks to lift rates by no more than the RBA, is enough.

Any moves, or new policies must be done in light of the property sector, because ultimately it is the “mum and dad” property owners who will suffer the most.

Political leaders need to have the fortitude and imagination to reform property taxes and the banking sector if there is any hope of addressing affordability issues.