MEDIA RELEASE:  The first increase in official rates in more than two years will make it even less likely that NSW can achieve the housing targets set by the Federal Government despite the NSW Government's microeconomic reform agenda to speed up new housing approvals.

Matthew Pollock, Executive Director of the Master Builders Association of NSW said, “The RBA's decision to increase rates is in response to the stubbornly high level of underlying inflation in large part caused by increased costs and capacity constraints in the construction sector. Cutting red tape, tackling labour shortages and finding solutions to finance and insurance challenges must be urgent priorities for government.

“Finance costs are already a big brake on new housing investment and the increase in rates will put the viability of multi-unit developments under additional pressure at a time when the business case for many is failing to stack up.

“These pressures are being felt right across the housing spectrum in NSW including in the three to six storey apartment projects which are the 'missing middle' of the state's housing mix.

“Master Builders is calling for greater investment in skills and innovative finance solutions from the Minns Government in the next State Budget to tackle the cost increases and capacity challenges that are reflected in today's rate hike.”