In good news for home builders, new figures show a rise in the number of loans provided to Victorians buying off-the-plan or newly built homes.

The latest information from the Australian Bureau of Statistics shows there were 2374 loans ticked off for new homes in November, an increase of 3.3 per cent compared to the previous year. Over the same time, 11,387 loans were approved for purchases of existing homes, which was a drop of 1.8 per cent against the same time a year earlier.

“There are 170 more loans being approved for new homes every month in Victoria compared to what we saw in 2013,” said Master Builders Chief Executive Officer, Radley de Silva.

“That is stimulating investment, generating new work and creating more jobs for home builders right across the state.

“Record low interest rates are helping drive activity in the home building sector, with buyers keen to seize the moment and build their dream home.”

According to the latest data, loans for new homes between January and November 2014 have climbed 7.4 per cent compared to the previous year, while loans for existing homes went up just 1.4 per cent.

The figures follow recent news that a record 6600 new homes received planning approval for the same month and with confidence surging throughout the industry late last year.

First home buyer rates stay low

Meanwhile, just 11.9 per cent of homes financed in Victoria were for first home buyers last November.

New South Wales saw just 8.1 per cent of loans provided to first home buyers, while it was 10.8 per cent in Queensland for the same month.

“It is becoming harder and harder for builders to secure work from first home buyers, who are battling increasing cost of living pressures and less affordable housing options,” Mr de Silva said.

“That’s why Master Builders wants to see the new State Government hold an independent inquiry into housing affordability, so we can review the way government charges, levies, taxes and policies add unnecessary costs on to home building projects.”