According to data from realestate.com.au, NRAS (National Rental Affordability Scheme) was the second most common search term for people looking at property to rent or buy in Queensland in searches on realestate.com.au in the six months to May 31.
The real estate website noted 51,416 searches for NRAS in that time frame, with the a Commonwealth Government program rent subsidy program. Taking first place was ‘pool’ with 197,487 searches.
Independent Senator Tim Storer has presented a bill to Parliament that seeks to provide landlords with a $2000 tax credit when they put energy efficient upgrades into rentals that are offered at $300 a week or less.
Senator Storer says, ‘It is estimated that improved energy efficiency in homes could cut energy consumption by up to 50 per cent in many households and cut energy bills by at least another $150 a year.
‘My proposals would fix an anomaly in the tax code where landlords are able to claim the cost of repairs, for example for old inefficient air-conditioning units that do not meet today’s minimum standards.
‘However they are not able to claim for energy efficiency upgrades that would make a big difference to so many who are finding energy bills unaffordable.
‘The proposals would improve the lives of many Australians on low incomes, alleviate anxiety, improve their health, leave more money in their pockets and start to improve the affordability, reliability and sustainability of our energy system.’
CHIA will present a submission on the Inquiry into the bill, the Treasury Laws Amendment (improving the Energy Efficiency of Rental Properties) Bill 2018.
The submission will be posted on our website in due course.
Argyle Housing, a not-for-profit organisation providing affordable and social housing in NSW, has seen a worrying rise in requests for housing services in Yass.
In an article published in the Yass Tribune, CEO Wendy Middleton said, ‘Of the properties that we manage in Yass, all 95 are allocated to social housing and in many cases are not enough compared to the list of people waiting for or needing social housing.’
Adding to the cause for concern locally, Ms Middleton said usually the organisation works with support agencies to assist in providing social housing, but recently in Yass, the office is dealing with enquiries from people off the street.
There are many causes of homelessness. They can include domestic violence, unemployment, mental health, drugs and alcohol and lack of affordable housing. Ms Middleton said it’s this last cause that’s contributing to the issue in Yass.
‘We are experiencing people coming in for housing packs and asking to be placed onto the NSW Housing Register as the Yass rental market has priced a lot of people out of affordability,’ she said.
‘The rising cost of housing is not specific to just one demographic, it affects all people including single, low-income earners, the young and the elderly.
‘Our staff have also experienced a number of people coming in asking for a referral to support agencies as they are quite often left trying to keep a roof over their heads but are struggling to buy groceries and pay bills.’
Argyle Housing is always looking for homeowners and real estate agents willing to provide housing at less than market rate to give to those in need.
Since mid-2017, CHIA has been talking to the Commonwealth Department of Social Services about the impending wind down of the National Rental Affordability Scheme (NRAS).
Athough 198 incentives will expire in 2018, there are still 1,850 incentives still to be delivered so the overall pool of active NRAS dwellings will not actually fall until 2020.
After 2020, the rate of NRAS expiries will ramp up to a peak of 9,178 in 2024. By 2026, a total of 36,721 will have left the system.
Community housing organisations currently hold about 40 per cent of al NRAS incentives. Those NRAS subsidies are worth $140m pa plus a rental stream of between $210m and $500m. This is significant, given the 2017-18 Report on Government Services noted the total income from social housing rents was about $600m a year.
CHIA’s suggestions for easing the transition included:
a reduced rate NRAS (say $5,000) for another few years to encourage investors to keep the dwellings as affordable
putting any ‘handed back’ NRAS incentives into a pool and offering them to landlords to maintain expiring properties in the scheme [no cost to budget]
an ‘availability subsidy’ to take the place of NRAS to enable Community housing organisations to offer rental subsidies for particular groups, such as single aged renters or family violence survivors.
NRAS exits
| Calendar Year | Number of Dwellings By State or Territory | ||||||||
| ACT | NSW | NT | QLD | SA | TAS | VIC | WA | Total | |
| 2018 | 67 | 5 | 24 | 7 | 95 | 198 | |||
| 2019 | 32 | 433 | 181 | 179 | 59 | 286 | 50 | 1,220 | |
| 2020 | 157 | 271 | 323 | 262 | 128 | 96 | 131 | 1,368 | |
| 2021 | 393 | 380 | 12 | 1,080 | 515 | 153 | 261 | 266 | 3,060 |
| 2022 | 746 | 457 | 150 | 2,696 | 517 | 150 | 1,296 | 352 | 6,364 |
| 2023 | 93 | 605 | 125 | 2,499 | 806 | 25 | 1,356 | 1,110 | 6,619 |
| 2024 | 542 | 1,140 | 188 | 2,845 | 1,078 | 321 | 2,143 | 921 | 9,178 |
| 2025 | 60 | 1,188 | 532 | 603 | 240 | 98 | 501 | 891 | 4,113 |
| 2026 | 361 | 2,008 | 50 | 2 | 596 | 1,584 | 4,601 | ||
| Total | 2,384 | 6,549 | 1,057 | 10,232 | 3,623 | 1,537 | 6,034 | 5,305 | 36,721 |
DSS has kindly shared some unpublished data on the NRAS incentives held by community housing organisations that will expire year by year, state by state. The bulk of the community housing owned NRAS properties are in Queensland.
CHIA has written to Australia’s new Prime Minister, Scott Morrison, and Federal Housing Minister, Sarah Henderson, to congratulate them on their new roles.
We have also requested meetings with both to discuss the development of a comprehensive, long-term national housing strategy to address the challenge of housing affordability.
Read more about Sarah Henderson.
The Australian Building Codes Board (ABCB) has commenced a new project to examine whether a minimum accessibility standard for housing should be included in the National Construction Code. Accessible housing is any housing that includes features to enable use by people either with a disability or transitioning through their life stages.
The ABCB will be holding morning consultation forums in each capital city, that will focus on its Accessible Housing Options Paper, which will be released in advance of the consultation forums.
All forums will be free to attend, although booking is essential.
Forum dates are to be confirmed, but at this stage are expected to be:
Canberra – Monday 15 October
Sydney -Tuesday 16 October
Perth – Friday 19 October
Adelaide – Thursday 25 October
Darwin – Friday 26 October
Brisbane – Tuesday 30 October
Melbourne – Wednesday 31 October
Hobart- Thursday 1 November
You can ensure you don’t miss out by registering your interest
Swinburne University is calling on Frontline workers who support people with a history of homelessness to participate in a research study that aims to learn more about their knowledge of brain injury.
Frontline workers includes supportive housing workers, case managers, counsellors who work with homeless clients, workers in the specialist homelessness services and others.
Study participants will be asked to complete a survey that is expected to take 15 to 20 minutes.
The Commonwealth Government’s Volunteer Grants round closes at 2:00 pm on 18 September 2018.Volunteer Grants aim to support the efforts of Australia’s volunteers by:
-providing small amounts of money that organisations and community groups can use to help their volunteers
-forming part of the Government’s work to support the volunteers who help disadvantaged Australian communities and encourage inclusion of vulnerable people in community life.
See the Funding Round Application page for details.
Anglicare plans to expand its redevelopment of the Steelworks Hotel in Port Kembla to provide additional affordable rental housing.
The welfare agency already has permission to turn the heritage-listed pub into a 22-bed residence for older people at risk of homelessness but is seeking to add an additional seven self-contained rooms in a separate building, following the acquisition of adjacent land.
The project is part of the organisation’s efforts to cater for the increasing number of people at risk of becoming homeless as they age.
Anglicare’s development manager Dean Cotter says, ‘We are committed to enriching and strengthening local communities through the provision of integrated accommodation, care and support services that are sensitive to cultural, financial and social needs of the people who will live in our homes.
‘The new proposal will allow Anglicare to assist 30 people primarily aged over 60 who are struggling to live on low incomes.
‘The project will be providing support services to rental tenants that foster independence and enable them to feel a part of their local community…and build meaningful relationships with others living with and around them.
The design for the pub will deliver 22 bed-sitter style rooms with private bathrooms and kitchenettes over two levels, with a lift included.
Construction of the first set of dwellings is expected to be completed in mid 2019.
Anglicare has opened a supported youth accommodation facility in Devonport to support young people as they move into adulthood.
Eveline House features 25 units, five of them purpose-built for people with a disability. Each tenant has a self-contained unit with access to a laundry, gym, common areas, outdoor spaces and a games room.
Anglicare CEO Chris Jones says the complex is a much-needed response to youth
homelessness in Tasmania.
‘Eveline House provides tenants with safe, affordable housing, as well as opportunities to participate in community activities, education, employment and training. It is a vibrant place where young people are encouraged to build on their existing strengths and capabilities.’
Anglicare manages similar facilities in Launceston (Thyne House) and Hobart (Trinity Hill).
Tenancies at Eveline House are for young people aged 16-24 years who are on a low income and eligible for social housing. The general tenancies at Eveline House are already full and two of the purpose-built units are occupied, with talks underway with the National Disability Insurance Scheme about the final three places.
Earlier this year, Anglicare’s Rental Affordability Snapshot showed that for young people receiving Youth Allowance, there were no affordable rental options anywhere in Tasmania.
‘No Tasmanian should have to worry about where they’ll sleep that night or how they’ll afford to eat,’ Dr Jones says.
‘Long term, affordable housing is foundational for people to fully participate in education, training and employment’.
Anglicare manages similar facilities in Launceston (Thyne House) and Hobart (Trinity Hill) and Dr Jones says Eveline House was made possible with the support of the Tasmanian Government and many advocates in Tasmania’s North West.
‘I look forward to seeing how the young people who live here will use their strengths and skills to contribute to this community.’
Community housing provider Homes North has opened its second affordable housing complex in Armidale to assist those experiencing housing stress.
The 2016 Census reported 14 per cent of Armidale households were experiencing housing stress (paying more than 30 per cent of their income in rent to keep a roof over their heads). The new Homes North five villa complex not only provides much needed affordable rental housing, it also provides access to housing for people with mobility challenges as the development meets the highest ‘liveable design standards’.
The complex has two and three-bedroom homes to offer a range of options for single people, couples and families looking for affordable rentals.
Homes North’s CEO Maree McKenzie says, ‘we are proud to make this new complex available in Armidale to those who need it in our community. The quality of design and build allows our households to live in dignity without breaking the bank. The build reduces power costs, and we ensure residents don’t pay more than 30 per cent of their income in rent. All in all, residents can live a better quality of life because of the reduced financial stress – knowing they can afford other basic living costs such as clothing, medical care and education.’
Homes North Asset Manager and construction partners, Hibbards Homes, ensured a quality build, Ms McKenzie says.
‘One resident says that her family is delighted to be in the new complex saying, “We love it here and it is so warm, we have hardly needed to use our heater this winter.”’
A new report has revealed the shocking gap between the incomes of typical renting households and the incomes required to avoid housing stress in Australia’s three most populated states.
Compass Housing’s Affordable Housing Income Gap Report, takes a new approach to the measurement of housing affordability for renters. The Report establishes the amount of additional income required to avoid housing stress on various types of rental properties in more than 300 suburbs, towns and local government areas across New South Wales, Victoria and Queensland. This amount is referred to as the Affordable Housing Income Gap (AHIG).
Compass spokesperson Martin Kennedy said in many cases the median incomes of renting households were tens of thousands of dollars per year below the level required to secure a basic two-bedroom apartment without experiencing housing stress. The situation for renters seeking a 3-bedroom house is worse, with median incomes up to $100,000 per year short of the level required to avoid housing stress in certain areas.
| Annual income to afford a 3br house | Amount above annual median income (AHIG) | Annual income to afford a 2br unit | Annual amount above median income (AHIG) | |
| Inner Sydney | $172,467 | $78,139 | $121,333 | $27,005 |
| Inner Melbourne | $130,000 | $50,336 | $93,600 | $13,936 |
| Inner Brisbane | $94,987 | $17,299 | $83,200 | $5,512 |
Housing stress is experienced by households with incomes up to 120% of the median that are paying more than 30% of their income on housing costs.
Mr Kennedy said the Report proved housing stress isn’t just a problem for low-income households. He said working families with average incomes are struggling to afford suitable rental properties close to where they work.
“To avoid housing stress in Sydney, Melbourne or Brisbane, a typical renting household often has to choose between living a considerable distance from the city or living in a one-bedroom apartment,” Mr Kennedy said.
“Neither of those things are practical for lots of families so they are effectively forced to accept living in housing stress. This can have a real impact on living standards because people in housing stress are less able to pay for other essentials like food, utilities, insurance, healthcare, childcare, and debt repayments.”
Mr Kennedy said that even in regional towns, where prices are nominally cheaper, comparatively lower household incomes mean renters in many areas still face significant affordability income gaps. The impact is particularly severe in “commuter belt” cities close to the capitals.
“The steady decline of housing affordability for renters is part of a broader housing crisis driven by a combination of low interest rates, preferential tax treatment for investors, rapid population growth, artificial rationing of land supply, high transfer duties, and a prolonged failure to invest in social and affordable housing.”
The Report recommends the creation of a national housing plan with initiatives crossing all levels of government. They include:
Link Housing is making the move into bigger office space in light of its success in securing public housing transfers.
Link Housing CEO Andrew McAnulty has led the organisation through a period of significant growth.
Last year the organisation won tenders to manage 235 specialist disability accommodation tenancies and almost 1900 social housing tenancies, which had previously been managed by the NSW Government.
‘It is a very exciting period of growth for us. By the end of the year, we would have more
than doubled our number of staff, properties under management and clients, largely due to
the Social Housing Management Transfers (SHMT) program,’ Mr McAnulty says.
‘There was no doubt we needed more space.’
Link has recently opened a new office in West Ryde and will unveil new larger office facilities in Chatswood on September 17.
The new offices will give the not-for-profit organisation the space to continue to provide
quality, client-focused and comprehensive services to their growing community of housing
applicants and residents within Northern Sydney and beyond.
The West Ryde office is located minutes from West Ryde train station and in the same building as the NSW Government’s Families and Community Services (FACS) Northern district office, allowing Link Housing to work closely with FACS in the lead up to the SHMT ‘go live’ in December this year.
‘This is a positive change for our clients. With offices that are easier to get to and with more
space and facilities, we will be able to meet and help more people. Our expansion and new
offices is really just about taking steps to fulfil our mission and vision of enhancing lives
through community housing,’ Mr McAnulty says.
Deputy CEO of Launch Housing and CHIA Vic Board Member Dr Heather Holst has been appointed as Victoria’s inaugural Commissioner for Residential Tenancies.
CHIA Vic CEO Lesley Dredge says Dr Holst is a ‘brilliant’ choice for the position.
‘Heather has worked in the housing, homelessness and tenancy sectors since 1989. With her experience of the sector stretching from the coal face of being a frontline worker through to senior executive and board roles, she will bring invaluable knowledge and skills to this new role.’
‘Victorian tenants will have a committed and diligent advocate,’ Ms Dredge says.
As Commissioner for Residential Tenancies, Dr Holst will work closely with stakeholders across the rental sector to identify systemic issues and make recommendations to government.
Minister for Consumer Affairs, Gaming and Liquor Regulation Marlene Kairouz says, ‘Dr Heather Holst has long been an advocate for housing rights and I congratulate her on her appointment.’
The ACT Government has awarded Community Housing Canberra (CHC) $230,000 to establish a scheme aimed at tackling the territory’s rental housing affordability crisis.
CHC plans to develop a program, modelled on the one used by HomeGround Real Estate, that encourages landlords to rent their properties to low-income households at sub market rent.
CHC chief executive Andrew Hannan says the program will start early next year, and he urged the ACT Government to assist further by adopting a proposal by the ACT Greens that would provide landlords with incentives to participate.
The incentive would provide a land tax exemption to landlords who rented their properties via a registered community housing provider at a rent discounted by up to 25 per cent of market value.
The ACT Government is expected to release its affordable housing strategy before the end of the year.
Click here to read more.
The Community Housing Industry Association has backed the objectives of the Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax and Other Measures) Bill 2018.
In a submission supporting the amendment, CHIA contends that the main benefit of the housing-related measures in the Bill will be to facilitate institutional investment in long-term residential rental housing.
The bill will limit access to tax concessions for foreign investors, and provide incentives for investors to increase the supply of affordable housing, including by offering individuals the opportunity to invest in residential property via Managed Investment Trusts rather than by becoming a landlord.
You can download the submission here.