Lending for new australian homes sees "promising start" to 2014

Lending for new homes in Australia has experienced a "promising start" to 2014, the Housing Industry Association has declared.

Figures from the ABS show that lending for new homes was strong in January 2014, with the number of loans issued to owner occupiers for new build property at its highest level in four years.

In January 2014 the number of owner occupier loans for the construction of new dwellings increased by 5.8 per cent, while the number of owner occupier loans for the purchase of new dwellings eased by 1.0 per cent.

“The overall January result is a promising signal that recently improved conditions in the residential construction sector will continue into 2014,” added HIA economist Diwa Hopkins.