Banking regulators may have to tighten lending standards sooner than expected amid fresh signs the Reserve Bank of Australia's back-to-back interest rate cuts have enticed investors back into the property market.

As Prime Minister Scott Morrison said the government and RBA governor Philip Lowe were working together to support the economy through a "complex" period, the Australian Bureau of Statistics reported a sharp lift in home lending through July.

Investor lending for housing rose at its fastest rate in almost three years in July, prompting speculation regulators may have to tighten lending standards. Credit:Tamara Voninski

The value of home loans in the month lifted 5.3 per cent, with gains across every state including a 5.4 per cent increase in NSW and a 3.4 per cent improvement in Victoria.

Investor lending excluding refinancing jumped 4.7 per cent, its strongest monthly gain since September 2016. Loans for construction slipped 1.6 per cent but there was a 10.7 per cent jump in those to buy newly built homes.