Tasmanian property market a devil to get onto

Housing affordability in Tasmania's capital of Hobart remains low, making it increasingly difficult to enter the property market

Across the Bass Straight from Melbourne lies the heart shaped island of Tasmania, long the butt of jokes from its mainland neighbours.

Now Tasmania is having the last laugh, with house prices sky-rocketing and visitors flocking.

But, for first time buyers, getting onto the property ladder is proving ever more difficult.

Figures from the Housing Industry Association show first home housing affordability for the June quarter was the second worst on record

Average monthly repayment in Hobart increased by 6.7 per cent to £954 while in regional centres it dropped by 5.2 per cent to £904.

Stuart Clues from the Housing Industry Association, says the latest figures are food for thought, "When one has a look at household income versus mortgage repayments we're faring worse now than we were this time last year," he said.

Mr Clues says that Government initiatives need to be introduced. "They're looking at a shared equity scheme where the Government's putting up £20,000 for young people to help get them into the housing market and we've been actively working with them since the state budget to try and get that policy changed from policy into reality."

Mr Clues is also urging the banks to pass on any rates reductions.

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