The Real Estate Institute of Australia has welcomed the Leader of the Opposition’s Budget-In-Reply commitment for a $10 billion dollar social and affordable housing fund for those that need it most. 

REIA President, Adrian Kelly said that it is an area of the housing market that needs to be fixed as highlighted by COVID-19 where the private sector supported tenants through rental eviction moratoriums.

“Done well, social and affordable housing also provides an important stepping-stone to participating in private markets and home ownership, especially if housing is strategically built close to work, education and public transport.

“If a Future Fund style model sustainably finances the gap for community housing providers without top up from the public purse, then that is a sensible thing and puts the sector in good stead as well as builds on the existing success of the National Housing Finance and Investment Corporation (NHFIC).

“In particular housing support for families fleeing domestic violence situations is both most welcomed and much needed,” he said.

Mr Kelly said a comprehensive plan was needed to address supply and affordability issues in the private rental market. The total package of houses to be built through the Future Fund would amount to the equivalent of one per cent of extra rental stock.

“The private rental market is around 27% of the housing spectrum, the absolute majority of which is currently supplied and paid for by Mum and Dad investors. We need a comprehensive plan that addresses all players in property.

“Negative gearing will remain an absolutely critical part of this and if the Opposition is serious about dealing with affordability issues, they need to give these Mum and Dad investors’ confidence to continue to invest with certainty.

“The reality is that rents are largely unchanged due to the pandemic with the March 2021 quarter CPI figures showing that the rental market continued its recovery from the impact of the COVID pandemic in most capital cities.

“The capital city weighted average showed that rents remained unchanged for the March quarter following an increase of 0.1 per cent in the December 2020 quarter,” Mr Kelly concluded.

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