Australia's new Treasurer, Scott Morrison’s call for national leadership to solve Australia’s housing affordability problem has been praised by a major residential building association.

The Treasurer's recent remarks about the importance of a bi-partisan and rational approach that involves state and territory governments has been backed by building association Master Builders Australia. 

“The problems surrounding housing affordability and their solutions are well known but the missing piece has always been a positive national agenda for reform,” CEO of Master Builders Australia Wilhelm Harnisch said.

“Master Builders' therefore welcomes the Treasurer's pointed reminder that the housing market is in need of reform and his plans to do something about it.

“The core of the housing affordability challenge, as identified by the Treasurer, is the lack of supply in meeting the demands of a growing population and that a regulation modernisation agenda is needed to improve competitiveness and efficiency.”

According to Harnisch, structural reforms to boost housing supply have to be at the core of improving housing affordability, including reforms to planning, development and approval processes and the cutting of excessive infrastructure charges.

“This is where national leadership is imperative because the constitutional responsibilities lie with state governments.  National leadership will rely heavily on working cooperatively and collaboratively with state and territory governments through COAG and other processes,” he said.

“Boosting the supply of both private and public housing is essential to ensure more Australians can have access to appropriate and affordable housing; structural reform is the answer and not removing negative gearing.”