The HIA has forecast a "chill wind" for residential building activity over the next year.

The HIA's National Outlook winter edition, released today, has predicted a 13% fall in housing starts over the two-year period of 2010/11 and 2011/12. HIA chief economist Harley Dale said apart from the GFC and a recessionary period surrounding the introduction of GST< the result would be the weakest level of housing starts since the mid-1990s. He accused the government of failing to take proper steps to alleviate supply-side obstacles.

"Instead of taking real steps to remedy a range of housing supply problems, governments seem happy to extract ever-increasing amounts of tax, fees and charges from the new home industry. Of course the carbon tax will be just the next example of this approach of raising costs for the industry which provides a roof over people's heads," Dale commented.

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