This argues for tax and policy settings to support market build to rent housing (BTR) defined as ‘Purpose built and designed long-term residential rental accommodation which is predominantly owned, managed and operated by an institutional investor for a long-term investment period’.

The priorities for the PCA are for the Australian government to reduce the rate of withholding tax paid by foreign investors in managed investment trusts to 15 percent (from 30%) and a 10 per cent rate for affordable rental housing provided in BTR developments. The report says reducing the withholding tax rate could result in an extra 150,000 homes over the next 10 years and help meet the Government’s targets under the National Housing Accord.

More controversially the report also suggests allowing institutions to claim the same GST concessions for a market rate product that are available for charitable organisations that develop social and affordable rental housing and charge rents below 75% of market rates.

There is no doubt that market BTR could both help ease the undersupply of rental housing and also result in improved management standards and greater security than is generally the case in the private rental market. To make this a reality we also need to learn lessons from abroad where not all BTR providers have been exemplary landlords and ensure tax concessions are only available to those organisations that meet high standards.

What market BTR won’t do is solve rental affordability for lower income households. However, there is a real opportunity to explore how affordable rental housing can be incorporated into market BTR. Involving the community housing industry in the debate on BTR will be important. The sector has long standing experience of developing affordable BTR and in recent years has entered into partnerships with institutional investors to deliver additional homes. Examples in Westmead, and Redfern,- together with the recent partnership between SGCH and Axa – and Evolve Housing’s expanding management services to institutional and government partners portfolios via Echo Realty demonstrate the sector’s capacity.

Maybe there is an opportunity for the National Housing Supply and Affordability Council to consider and report on how to support the growth of the BTR sector to ensure it full potential is realised.