Community Housing Ltd supports findings of Curtin economics report

INCREASING the supply of affordable rental properties for those ineligible for social housing is a key finding of a new report into the private rental sector, produced by the Bankwest Curtin Economics Centre.
 
According to the report, which mirrors Community Housing Limited’s (CHL) experience as Australia’s leading not-for-profit housing provider, there is a significant lack of stock for those renters whose personal circumstances mean they are ineligible for government-supported rental housing.
 
The Bankwest Curtin Economics Centre Report into the Private Rental Sector (PRS) was based on an analysis of the 2016 census data and a separate survey of 3182 private renters.
 
Findings from the research found that six in 10 renters do so because they have no other option.
 
But it also found that almost half of those are paying over 30 percent of their income on rent, a proportion that rises to an untenable 64 percent for older respondents (over 55 years).
 
“An effective and affordable private rental sector would allow households to transition out of social housing and potentially save for owner occupation,” Steve Bevington managing director of Community Housing Limited said.
 
“Our experience supports the findings from the Curtin Report, which is that there’s a significant shortage of affordable housing for private rental, as there is for social housing.
 
“It’s imperative that we increase the stock of available affordable private housing, to both provide greater opportunity for those looking to transition out of social housing and to secure the tenure for those renting.
 
“According to the report which highlights the issue, one third of renters are forced to move due to the property being sold, while households that are most likely to suffer from discrimination are single parents with children.”
 
According to the Bankwest Curtin Economics Centre report, a surprising one in four Australian households are rental properties, almost 26 percent of those in the private market and almost 30 percent in social housing.
 
“Even so, at CHL we know that the availability of stock is no-where near enough to satisfy demand and that successive federal and state governments are not highly motivated to realise more affordable housing,” Mr Bevington said.
 
“It’s a matter of economics, in this case the government’s.
 
“Releasing or investing in more affordable housing stock will flatten the housing market in terms of real estate values, so the desire for the market to function and the buying and selling of housing, reduces.
 
“This in turn means that the states will lose stamp duty revenue, while the Federal Government will also miss out on Capital Gains Tax.

“I believe an option for consideration is the removal stamp duty and replacing it with a land tax, meaning you don’t have windfall gains to transfer taxes and there isn’t incentivisation for unaffordability.”
 
During Homelessness Week earlier this year, CHL took the opportunity to again reinforce the need for a co-ordinated Australia-wide strategy to deliver 500,000 much-needed social and affordable houses.
 
It suggests a national approach that utilises the capabilities of all the stakeholders including government, not for profit and private sector to deliver a solution.
 
“Expanding the housing stock is part of the solution and what’s needed is a co-ordinated national strategy with a corresponding increase in funding and incentives to enable all stakeholders, government and private to create partnerships to invest in more housing and services,” Mr Bevington said.
 
“Buying existing properties to fill the gap is a shorter term solution, however it’s an expensive pathway, and is in fact in a major contributor to many people struggling with their personal circumstance and in some cases being homeless and needs urgent attention by all levels of the government.”  
 
Access and view the Bankwest Curtin Economics Centre Report into the Private Rental Sector (PRS) here: http://bcec.edu.au/publications/the-private-rental-sector-in-australia/
  
About Steve Bevington and CHL
 
Steve Bevington is the founder and managing director of Community Housing Limited (CHL),
 
After experiencing homelessness when he was younger, Mr Bevington was determined to make a difference in the world, and that he has. He has led CHL from a one worker organisation in his home in Melbourne to business operations into three of the four regions of the world which harbour extreme poverty.

By November 2018, CHL will have 11,000 properties under management in Australia making it the largest community housing provider in the country with operations across the six states and nearly 300 staff delivering services to support those most disadvantaged. 
 
Mr Bevington is one of Australia’s leading experts on housing affordability and is on the board of Community Housing Industry Association (CHIA), Australia’s peak body for community housing and is a key contributor to policy advocacy influencing government housing policies and initiatives.

CHL has a particularly strong commitment to housing those on low incomes, essential service workers and high and complex needs who have been disadvantaged in the market place.

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