HOUSING INDUSTRY ASSOCIATION FIGURES SHOW NEED FOR HOMELINK

Queensland Housing Minister Robert Schwarten today said that new research released by the Housing Industry Association showed that there was clear need for more supply of affordable housing and his proposal of Homelink was part of the solution.

“Research released by the Housing Industry Association shows that soaring rents and mortgage stress are placing unprecedented pressure on lower-income families, with 500,000 people paying more than 30% of their income for accommodation.

“They are now saying what I have been saying for months – that record low vacancy rates in rental accommodation and the resulting rent auctions are pushing lower-income Australian households closer to the poverty line.”

Mr Schwarten said the pressure was pushing people on to the public housing waiting lists, and the Department of Housing is now seeing 1500 households a month knocking on the door of public housing seeking assistance.

“After a decade of funding private rental assistance at the expense of public housing by the Howard Government, it is obvious that this approach has given us the most unaffordable rent market in 50 years”, Mr Schwarten said.

“Last week was the first time ever that the Prime Minister has mentioned private rental problems and his solution of raising rental assistance”

“Australia’s largest apartment developer Harry Tribugoff said that such an approach will just force rents higher and I agree with him.

“This tells me that the Howard Government is totally lost for ideas on how to fix this growing problem”, he said.

What we need is a new direction and I believe my public-private partnership proposal of Homelink is on the money.

“The solution to the housing crisis is not rent subsidies, which would just fatten the pockets of landlords, but to increase the supply of affordable homes to rent.”

He again urged the Federal Government to consider Homelink – to boost the supply of affordable housing in Australia by linking government housing assistance and private property investors.

“I developed Homelink in March last year and proposed it to the Federal Government, but since then have heard little” he said.

If they had taken this idea up then, we would already being bringing affordable housing stock on line.

“Under Homelink, 1000 private rental units would be provided for $31 million compared to the $370 million capital investment if government was to provide it alone.”

The Homelink model is based on the following principals:

• The Federal Government pays 10 years rent assistance up front to the investor and this upfront payment is not subject in income tax;
• State Government provide a grant of $6,000 tax free to the investor as well as free tenancy management services;
• Local Governments provide a 25% discount on general rates
• Tenants living in a Homelink property will not receive rent assistance as it will be paid directly to the investor.

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