The latest Forecast of Building and Construction from Master Builders Australia (MBA) predicts a boom in home renovations over the next three years.

According to Master Builders Australia CEO Wilhelm Harnisch, the new forecasts predict growth in the housing alterations and additions market of 14.9 per cent per annum on average over the forecast period to 2016/17. This is in contrast to the very modest growth of 3.2 per cent per annum experienced over the last three years.

He observed that the strong growth in renovations will boost the prospects of builders across Australia and complement the pipeline of work indicated by the solid lift in new building activity.

The Northern Territory is forecast to experience the strongest growth, with average yearly growth of a massive 27.8 per cent up from an average of 9.7 per cent over the previous three years. New South Wales and Western Australia are right behind with per annum average growth predicted to be up 19 per cent and 18.6 per cent respectively.

Strong performance is also expected from the ACT (up by an average of 16.9 per cent), Queensland (up 14.6 per cent) and Victoria (up 12.5 per cent). Less spectacular growth is forecast for South Australia up 3.1 per cent and Tasmania up 1.5 on average over the three years to 2016/17.

Spending on alterations and additions across Australia is forecast to average more than $9.6 billion per annum in the three years to 2016/17, which is nearly 38 per cent higher than the $7.0 billion annual average for the three years to 2009/10.