R>Australia should see a mild but narrow recovery in new housing starts in the rest of 2012 and the beginning of 2013, according to the latest analysis from the Housing Industry Association.

The HIA, which represents the residential building industry, is predicting an increase of 1.*5 in new starts driven by activity in New South Wales and Western Australia. It is also forecasting that renovation activity is likely to grow 1.6% this year following a 2.7% decline in 20111/2012.