The Australian Bureau of Statistic's lending finance data shows loans for home renovations dropped 10.7 per cent in February, the largest decline in seven years.

Loans for renovations fell 11.8 per cent over the year – the weakest annual growth rate in five years.

Also notable was data showing that loans to buy blocks of land was at a record high of $8.13 billion for the twelve months to January.

Total new lending commitments, which includes new housing, personal, commercial, and lease loans, fell 1.0 per cent in February to $70.7 billion, down from $71.4 billion in January. 

Total loan commitments are up 4.7 per cent on the same time last year.

Loans for alterations and additions fell from $377.3 million in January to a three-year low of $337 million in February. 

"A deceleration in home prices due to tighter lending restrictions maybe changing demand for home renovations," wrote Craig James, chief economist of CommSec.

"The capital upside appears more limited than in recent years should home owners decide to sell their abodes," he said.

Click her to view the ABS data in full.

Read more about housing finance:

Aussie families choosing to renovate rather than move: Westpac survey

How to decide between renovating and upsizing

How to get the most 'bang' from your renovations 'buck'