Mark Clyne, owner and director at Landmark Harcourts, said property investor activity in town was currently the quietest it had been in eight years as institutions have toughened their borrowing application criteria in the wake of the Royal Commission.

Traditionally city-based investors buy out here for high rental returns. They can get five to eight per cent on Horsham properties, Mr Clyne said. If the banks free up lending, we will see more investment in Horsham.

Mr Clyne said the need for such investment in additional housing was self-evident at the moment.

Our rental properties are 100 per cent full, he said. We have 15 to 20 applicants per property, and new listings are usually going within 24 hours.

There have been 29 building approvals in the Horsham Rural City Council area in the financial year to date, while there were 110 approvals in each of the previous two financial years.

Wimmera Development Associations Ralph Kenyon said while the group would like to see more housing developments, it was a difficult issue given the high demand generated by the Murra Warra wind farm project.

There is a significant pressure being applied for rental accommodation in the short term (but) whether or not that will continue into the future will depend on projects coming to fruition over the next 12 months, Mr Kenyon said.

One of the histories with the property market in the Wimmera is its difficult to get capital growth, which is what investors want long-term, he said.

Its hard to see that occurring while the region has a declining population. We need more investment in manufacturing or service industries to (secure) long-term commitments by investors.

Mr Kenyon said he was also interested to see what would come out of the councils ongoing review to better use the area surrounding the Wimmera River within Horsham, saying this could also be significant in attracting more housing investment.

Tim Coller of Coller Rathgeber Property Group said it was unlikely the banks would relax restrictions in the short term, as they were waiting to see what recommendations the Royal Commission would hand down next year.

But investors shouldnt be discouraged.

Solid applicants for housing loans with reasonable deposit and good employment history still stand good potential, he said.

Mr Clyne went further, saying there were plenty of benefits to investing in property in Horsham in the current market.

There is no better time to buy and become a landlord in Horsham than now. Prices are flat and demand for rentals is the best it has been in ten years.