Howard urges new migrants to go regional

AUSTRALIA’S housing price pressure could be eased if new migrants were encouraged to settle in rural or regional centres, former prime minister John Howard says.

Speaking at the Gold Coast, he said doing that wouldn’t change things immediately but it would take the pressure off.

“I think the government is quite sensibly looking at ways of encouraging new migrants to settle in rural areas or re- gional areas and the less populous capital cities,’’ he said. “Over time, it would take some pressure off, but all of these things happen over time.’’

Mr Howard was on the Gold Coast to open the Ray White and Loan Market, Connect 2018 conference.

He said it was harder now for people to buy their first home than for his generation.

“I am 79 so it was easier for me,’’ he said, “although inter- est rates were higher then, much higher.

“We have never known lower interest rates than we have at the present time.’’

Mr Howard said the biggest problem with housing cost was that over the years, the supply of land had not kept pace with demand, and there had been “absurd restrictions’’ on the release of land around some capital cities.

“I think in some parts of the country, the level of immigration is probably putting pressure on the housing market, but in other parts of the country, it is not the case.” he said.

“It varies, it depends where you live — if you live in South Australia or Western Australia, they want more migrants.’’

He encouraged first-home buyers to keep saving, but said that for some, it would mean leaving the big cities.