The prudential regulator sees no need to place restrictions on borrowing to buy real estate and it has the support of one of the major banks.

Westpac chief executive Peter King has backed APRA’s resistance to curtailing home lending, saying the situation is vastly different to the last time limits were introduced.

The Australian Prudential Regulation Authority says it is not ready to intervene in the housing market because there was no evidence that lending standards have deteriorated.

Chairman Wayne Byres has told a parliamentary committee that activity is being driven by first-home buyers, creating a different dynamic to the one that compelled APRA to curb investor loans in 2014 and 2017. King says the situation is “a bit more complicated this time”, with home-buyers mostly seeking detached dwellings, leading to a mismatch of supply and demand that is sending prices higher.

Byres says house prices will rise faster than incomes, but this is not APRA’s responsibility or focus.