Current at: 13 August 2007
The Housing Industry Association has welcomed today’s announcement by the Federal Labor Party to establish a National Rental Affordability Scheme that will provide an additional 50,000 affordable private rental properties.
HIA’s Managing Director, Dr Ron Silberberg, said the initiative builds on the work done by the Housing Summit partners and provides important tax incentives aimed at increasing the supply of affordable accommodation in the private rental market.
“This is a very positive step as it provides incentives for investment. It is essential that governments look at proposals that address the chronic shortage in the supply of affordable housing,” Dr Silberberg said.
The scheme involves an investment of $603 million over five years, which as estimated will provide an additional 50,000 dwellings at 20 per cent below market rent.
“There are more than 500,000 households in rental stress and if left unchecked this number will blow-out to 730,000 in the next three years,” said Dr Silberberg.
The design of the scheme ensures that investment is targeted where it is needed. HIA has long advocated policies that address chronic shortages in the supply of affordable housing.
“Demand-side stimulus that is not countered by appropriate supply-side incentives will do little to restore housing affordability. We need measures that promote the supply of affordable housing and from our perspective this proposal is a winner,” said Dr Silberberg.
Rental vacancy rates within the private rental market are the lowest on record. There is a desperate need to get greater investment in affordable private rental accommodation.
The scheme announced by the ALP today builds on the work done by the Housing Summit partners and other successful schemes in the United Kingdom and United States.
“We are encouraged by today’s statement by the Prime Minister that the Federal Government is looking at a similar proposal,” said Dr Silberberg.
Other proposals considered essential in curing the ills of housing affordability are tied Federal Funding for residential infrastructure and a Home Super Saver scheme, which allows employees to salary sacrifice for a home deposit.