Current at: 12 August 2008
Today’s announcement by NSW Premier Morris Iemma to advance the number of secondary dwellings available for rental accommodation across NSW is a positive step in addressing the rental shortage dilemma.
HIA’s ACT/Southern NSW Executive Director, Mr Stuart Collins said that while the initiative alone was not a panacea for the state’s rental crisis, it was a positive contribution to a suite of initiatives that are desperately needed to ease the rental pressures that are inflicting regional NSW after four years of undersupplying new housing stock.
"NSW requires 47,800 newly constructed dwellings this financial year to meet underlying demand. However, based on last year’s completion number of just 29,000 and current activity levels, we estimate as few as 29,200 will be built. That’s a shortfall of well over 18,000 dwellings," Mr Collins said.
"Rental accommodation is extremely tight across most areas of the South Coast and Riverina, particularly in the established areas – close to jobs and public transport. Many allotments in these areas are around the quarter acre size and could comfortably accommodate a 60m² dwelling in the rear yard," Mr Collins said.
"Streamlining the approval process, removing any notion of land tax and taking up the fight against capital gains tax for secondary dwellings paves the way for property owners to turn a portion of under-utilised yard space into a rental income. It also provides a practical option for accommodating elderly parents close by, with minimum impact on each others independence." Mr Collins added.
"This is not about converting an old tin shed into an out house," Mr Collins stressed. "A newly built secondary dwelling can accommodate a couple and even a small family in a very comfortable and sustainable home at a modest rental cost," Mr Collins said.
"And for those with older kids still at home, a secondary dwelling provides the option of assisting them to establish some independence while they save for a deposit for their own home." Mr Collins commented.