The lack of action on housing affordability from Scott Morrison and the Federal Government has now been compounded by counter-productive policy on the run which has completely blindsided business and the housing sector.
Without warning, Mr Morrison and sidekick Michael Sukkar have announced that from 4:30pm yesterday, Managed Investment Trusts will no longer be able to invest in residential property with the exception of affordable housing.
This policy move has completely ambushed the property and construction sector.
The Treasurer needs to come clean immediately and explain exactly what this policy on the run was designed to achieve.
This shock move could kill the fast emerging build-to-rent movement that has already taken off in the US and more recently in the United Kingdom. Its a potential new billion dollar addition to the Australian real estate market.
The Government tells us that increasing housing supply is a crucial part of dealing with Australias housing affordability crisis.We agree.But this move has the potential to cruel new supply funded by institutional investors.
This bizarre banning of MIT purchases of residential property will directly hit housing supply.
Its one thing to have a discussion with the property sector on what government may or may not want to do to encourage or facilitate build-to-rent in Australia, but its another to kill potential in before it even begins!
Scott Morrison needs to urgently reconsider this policy on the run and engage properly with experts in the field instead of making it up as he goes.