The peak body of the house building industry, the Housing Industry Association (HIA), is now aggressively lobbying with all its power to have the agenda of the federal election widened from what it describes as far too narrow a current debate. The HIA is pushing its concerns that far too few houses and apartments are being built and the continued shortage will retain the pressure on pricing. The body is disgusted the situation has so far been ignored in the election campaign.

Respected analyst BIS Schrapnel has come out in the media insisting it represents the vast majority of economists who are disappointed with the lack of serious home building program by both major political policies. The company says unless big federal backing is quickly given to the industry, domestic construction will slow over the next few years.

Economics forecaster BIS Schrapnel is convinced the normal time-lag of rents not keeping pace with property price rises, is about to be completed with rent levels tipped to lift in both commercial and residential markets. The company’s Chief Economist insists yields will begin to improve after a long period of low returns on investments.

The news that city house prices fell for the first time in 18 months has been widely welcomed by the wider business sectors. Most see it as overdue as previous rates of increases were unsustainable and unless checked could have resulted in a much featured prices bubble burst. Certainly, retail groups have long been complaining how huge mortgages were substantially reducing consumer spending.