Published Wednesday, 20 June, 2007 at 02:35 PM
Minister for Public Works, Housing and Information and Communication Technology
The Honourable Robert Schwarten
RENTAL MARKET PART OF AFFORDABLE HOUSING ISSUE: SCHWARTEN
Queensland Housing Minister Robert Schwarten said today that it was about time Federal Coalition MPs woke up to concern in the community about housing affordability and looked at measures to improve it.
Mr Schwarten said the Federal Government needed to look at measures to improve affordability in the rental market as well as home purchases.
“Finally it seems they are feeling the heat that has been generated by a lack of Federal housing policy these past 12 years or so,” Mr Schwarten said.
“We’re just months out from a Federal election and the Howard Government has cottoned on to the fact there’s a housing affordability crisis, so much so they are ‘discussing it’ at their regular party room meeting in Canberra.
“And in an attempt to save their own hides, they want to be seen to be doing something about it. It is exactly the same as John Howard’s miraculous back flip on climate change and broadband.
“Now they are talking about doubling the First Home Owners Grant and getting institutional investors to partner with home buyers.
“But instead of just looking at housing affordability for people wanting to buy their own homes, Mr Howard and his coalition cronies also need to turn their attention to the rental market as well.”
Mr Schwarten said housing affordability in the private rental market – like home ownership – was at its worst level since World War II.
“This is a problem which the Federal Government has created and is choosing to ignore,” he said.
“Since coming to office, Mr Howard and Mr Costello have raked $400 million out of public housing in favour of promoting and funding the private rental market as a means of providing housing for all.
“More than $4.5 billion in taxpayer’s dollars have been spent subsidising private landlords in Queensland through Commonwealth Rent Assistance during the past nine years.
“But in recent years we have seen the flaws in their policy emerge with rents skyrocketing and rent assistance failing to keep up, so low and even medium income earners have been pushed out of the private market and into public housing.”
Mr Schwarten said Commonwealth rent assistance had risen by $7 per week since 2002 while at the same time private rents had gone up by $100-$130 per week in many parts of Queensland.
“The State Government has more than doubled the Public Housing budget from around $300 million in 1998 to $719 million in 2007-08 and we will continue to play our part but the Federal Government has to be part of the solution to housing affordability,” he said.
“After 12 months, we are still waiting to hear from the Federal Government about Homelink.
“We developed Homelink in March last year and initially got a positive response from the Federal Government but since then have heard little.
“The Queensland Government has its money on the table for this proposal. 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 tax free up front to the investor;
• State Government provides a grant of $6,000 tax free to the investor as well as free tenancy management services; and
• Local Governments provide a 25% discount on general rates from Homelink properties.
Media contact: (07) 3237 1832
Mr Schwarten said the Federal Government needed to look at measures to improve affordability in the rental market as well as home purchases.
“Finally it seems they are feeling the heat that has been generated by a lack of Federal housing policy these past 12 years or so,” Mr Schwarten said.
“We’re just months out from a Federal election and the Howard Government has cottoned on to the fact there’s a housing affordability crisis, so much so they are ‘discussing it’ at their regular party room meeting in Canberra.
“And in an attempt to save their own hides, they want to be seen to be doing something about it. It is exactly the same as John Howard’s miraculous back flip on climate change and broadband.
“Now they are talking about doubling the First Home Owners Grant and getting institutional investors to partner with home buyers.
“But instead of just looking at housing affordability for people wanting to buy their own homes, Mr Howard and his coalition cronies also need to turn their attention to the rental market as well.”
Mr Schwarten said housing affordability in the private rental market – like home ownership – was at its worst level since World War II.
“This is a problem which the Federal Government has created and is choosing to ignore,” he said.
“Since coming to office, Mr Howard and Mr Costello have raked $400 million out of public housing in favour of promoting and funding the private rental market as a means of providing housing for all.
“More than $4.5 billion in taxpayer’s dollars have been spent subsidising private landlords in Queensland through Commonwealth Rent Assistance during the past nine years.
“But in recent years we have seen the flaws in their policy emerge with rents skyrocketing and rent assistance failing to keep up, so low and even medium income earners have been pushed out of the private market and into public housing.”
Mr Schwarten said Commonwealth rent assistance had risen by $7 per week since 2002 while at the same time private rents had gone up by $100-$130 per week in many parts of Queensland.
“The State Government has more than doubled the Public Housing budget from around $300 million in 1998 to $719 million in 2007-08 and we will continue to play our part but the Federal Government has to be part of the solution to housing affordability,” he said.
“After 12 months, we are still waiting to hear from the Federal Government about Homelink.
“We developed Homelink in March last year and initially got a positive response from the Federal Government but since then have heard little.
“The Queensland Government has its money on the table for this proposal. 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 tax free up front to the investor;
• State Government provides a grant of $6,000 tax free to the investor as well as free tenancy management services; and
• Local Governments provide a 25% discount on general rates from Homelink properties.
Media contact: (07) 3237 1832