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place further stress on housing affordability," Moody's said. On average, double income households need 27.9 per cent of their monthly income to meet monthly mortgage repayments in March 2017, up from 27.6 per cent at the same time last year. Affordability worsened in Sydney, Melbourne and Adelaide in the year to March, largely due to house price growth, but improved in Perth and Brisbane. Melbourne recorded the biggest deterioration in affordability over the year, with 30.3 per cent of household income spent on mortgage repayments, up from 29.2 per cent a year earlier. Moody's found Sydney is the most sensitive market to changes in housing prices, income and interest rates. Australian Council of Social Service head Cassandra Goldie has urged Prime Minister Malcolm Turnbull to not back away from tackling housing affordability. "Australia's housing affordability crisis is serious and we need a serious plan to tackle it. We have become a nation of housing haves and have-nots," she said. The Property Council says the government should not tinker with negative gearing, noting the tax break supports the rental property market. "Support the rental market - don't play with negative gearing and use market solutions for affordable rental housing," it said in its housing affordability plan.