Bank outlines five-year plan to support housing supply and first-home buyers
National Australia Bank (NAB) has outlined plans to provide at least $60 billion in lending over the next five years, aiming to help ease Australia’s ongoing housing shortage.
In an open letter addressed to customers, government, developers and other stakeholders, Andrew Irvine (pictured top), NAB chief executive, revealed the bank’s intention to allocate funding to improve housing affordability by 2030.
The plan includes $30 billion for commercial real estate development projects with a primary residential focus, as well as funding for specialist accommodation such as build-to-rent, student housing, land lease, and community housing. An additional $30 billion is earmarked to assist first-home buyers through the Australian government’s 5% Deposit Scheme.
NAB said the initiative is designed to address both supply and demand issues in the housing market. The bank estimates that the funding could support approximately 55,000 loans for first-home buyers and facilitate the construction of around 50,000 new dwellings.
“Housing is Australia’s biggest societal and policy challenge,” Irvine said. “We are not building enough homes to provide access to housing for all Australians, let alone achieve the dream of home ownership. NAB recognises and embraces the opportunity we have to address this challenge.”
Matt Berg (pictured right), co-founder and co-chief executive of build-to-rent company Local: Residential, described NAB’s $60 billion target as a significant commitment to tackling the housing crisis.
“Our focus is on delivering homes that make a real difference in resident’s lives,” Berg said. “Convenience, amenity and lifestyle are fantastic by-products of build-to-rent – but first and foremost, we are putting a secure roof over people’s head and delivering housing at scale.
“We are working with NAB to not only provide this product to the market at a time of need, but also to institutionalise the sector and ensure that it can continue to supply the Australian housing market.”
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