Home builder AV Jennings said the Reserve Bank of Australia’s rapid run of rate rises had halved inquiry levels from a year ago and put the onus on governments to maintain demand for new housing through stimulatory measures such as stamp duty reductions.

Even as it reported a surge in half-year profit as settlements rose 22 per cent, and said the entrenched housing shortage and return of inbound foreign migration would ensure continued growth in demand for dwellings, the listed builder said consumer sentiment and borrowing capacity were weakening due to the surge in lending rates.