Housing industry forecasts 'bloodbath' ahead as Labor criticises Coalition's homebuilder scheme

Master Builders Australia is calling for an extra $5.1bn in support as it expects new housing construction to plummet 27%

Labor has seized on new housing industry forecasts of construction activity to argue the Morrison government's homebuilder scheme isn't enough to stop a bloodbath" in the sector.

Master Builders Australia on Monday revealed it expects new house construction to plummet 27% from 170,000 in 2019-20 to 125,000 in 2020-21, and called for an extra $5.1bn in economic supports. Treasury estimates, released on Friday, forecast a drop to 140,000 new homes in 2020-21.