Affordable housing ‘almost non-existent’ says shadow housing minister

The major parties have revealed their plans to tackle housing affordability. Photo: supplied

By Eleanor Wilson

Shadow housing minister Richard Riordan has slammed the State Government, calling access to affordable housing “almost non-existent”.

It comes after new data shows rent in the City of Casey has risen 7 per cent over the past year.

“After eight years of the Andrews Government, we have fewer social and affordable housing places available than we did eight years ago,” Mr Riordan told the Berwick Star News.

He said 11 families are added to an urgent priority list for housing each day.

“That means 11 families a day are potentially sleeping rough in cars, tents and on others couches. This is not good enough.”

Mr Riordan said a Liberal elected government would commit to fast track 100,000 extra home block over the next four years.

“A Liberal Government will work with church, philanthropic and community housing groups to unlock potential home sites, and will be open to discussing government tax and charge incentives that will make long-term affordable housing more viable as a long-term investment opportunity,” he said.

The MP said the Productivity Commission’s recent Social and Affordable Housing Report found the majority of low income private renters spent over 30 per cent of their income on rent in 2019-20, while 20 per cent spent more than half their income on rent.

He said a new Liberal government would “instantly review why social housing in Victoria is costing twice what it costs in other states”.

Mr Riordan’s comments come as the City of Casey last month called for an urgent investment in social housing ahead of the State Election.

The council is calling for the State Government to “stem the significant and growing shortfall of 6000 affordable and social housing dwellings, with priority projects for women and families experiencing family violence and/or homelessness”.

There are currently 2192 social housing properties in the City of Casey, according to the State Government.

Meanwhile, Berwick Greens candidate Hayley Perry said the Greens want to see rent increases regulated.

“The Greens’ plan would see rent increases controlled so they remain affordable for Victorians, stronger protections from evictions, and longer-term leases so renters can make their rentals their homes,” she said.

“We also want to fix the power imbalance between renters and estate agents by establishing a Housing Ombudsman to help enforce renters’ rights and make sure estate agents are complying with the law.”

The party said it wants to see 200,000 new public and affordable homes built, including 100,000 public homes over the next 10 years.

“Almost one in three Victorians are renters, yet rents are currently going up four times faster than wages and too many renters are paying more than 30 per cent of their paycheck in rent – the definition of unaffordability,” Ms Perry said.

“Renters in Berwick are facing the same difficulties as renters across the state with out of control rent rises and very few rentals being available, meaning renters are having to put up with substandard houses.”

Labor’s current plan to tackle housing affordability comes in the form of the $5.3 billion Big Housing Build, which “is delivering 12,000 new homes while also creating 10,000 jobs a year”.

This includes 40 homes recently completed and 63 underway in the City of Casey, according to a government spokesperson.

“In addition to the Big Housing Build, a further 10 homes have recently been completed under other social and affordable housing programs,” the spokesperson said.

“We will also be providing access to more rental homes and a greater range of housing options through the Affordable Housing Rental Scheme and Build-to-Rent incentives.”

The new Affordable Housing Scheme will offer at least 2400 homes available to low-to-moderate income earners across the state, for at least three years, the spokesperson said.

Eligible Build‑to‑Rent developments completed and operational between 1 January 2021 and 31 December 2031 will receive both the 50 per cent land tax discount and full exemption from the Absentee Owner Surcharge (AOS) for up to 30 years from 1 January 2022.

Build‑to‑Rent provides a new approach to residential housing, where properties in a development are designed to be held for rental over the long-term.

Originally announced to end in 2040, the support will now provide the certainty of a full 30-year concession to projects starting before 2032, the government said.