Drop in investment to push rents higher

A fall in investor activity in November 2008 bodes ill for an already tight rental market, but could encourage more buyers into home ownership.

ABS housing finance data released yesterday showed the value of loans for investment purposes dropped 6.1% in November 2008, seasonally adjusted.

HIA chief executive Chris Lamont said the fall in investment loans provided real concern for rental price pressure.

The latest ABS data has revealed that first home buyer activity surged in November 2008, with the sector now accounting for nearly a quarter of all loans.