Rents have been rising and affordable rental housing has become harder to find. This is making it even harder for low‑income families and individuals who are renting to get by.
Assisting renters
Helping Renters
Barry and Judith are a low-income couple with three young children and have been on the waiting list for public housing for over a year. In the meantime, they have been paying $325 per week for a three bedroom unit in the private rental market.
As a result of incentives provided under the National Rental Affordability Scheme, a superannuation fund, a developer and a not-for-profit housing provider combine to build a number of new affordable rental properties. The newly built dwellings must be made available to low-income households at least 20 per cent below market rent for the area.
Barry and Judith are offered one of the new rental properties for $260 a week — $65 below the market rent for similar properties and also a $65 weekly saving on their current rent.
More than 2 million Australian households are renters. A large proportion of this group are low-income earners who are hardest hit by rising housing costs.
- Commonwealth, State and Territory governments will together provide $8,000 per dwelling each year to investors for up to ten years to encourage the construction of new dwellings by institutional investors.
- By 2011‑12, the scheme is expected to deliver 50,000 new rental properties, with a further 50,000 from 2012‑13 if demand remains strong.
- Dwellings built through the scheme must be rented out to low-income families or low-income singles at rents that are at least 20 per cent below market rates.
This way, the scheme will both boost housing supply and deliver savings to some of the people in the greatest need.
Through lower rents, the National Rental Affordability Scheme will help more renters to make ends meet and save for their future.
