Tonight’s Federal Budget featured plenty of promises to somehow improve housing supply over the long-term, but failed to recognise one of the most simple ways to remedy the rental crisis, according to the Real Estate Buyers Agents Association of Australia (REBAA).
REBAA President Melinda Jennison said the Labor Government had again refused to accept the fundamental role that property investors have long played in the provision of rental housing in this country.
“Again, we have been presented with a variety of measures to supposedly boost housing supply at a time when building approvals and completions are at decade-lows,” Ms Jennison.
“For decades, property investors shouldered the burden of providing rental supply for successive governments. However, it’s evident that this is no longer the situation. The rental crisis is the end result of this changing dynamic.
“The volume of investors currently active in the market is well below where it needs to be to significantly improve rental supply, but the Federal Government still won’t do anything to encourage more investors into the market.
“It’s surprising that the budget has provided incentives to foreign investors to purchase established Build to Rent developments, but no incentives have been offered to the hundreds of thousands of resident investors who provide homes for millions of renters throughout our country.”
According to the Australian Bureau of Statistics Lending Indicators for March, the number of new loan commitments for investors has dropped nearly 22 per cent in the past two years.
Ms Jennison said while the announcement of the $9.3 billion National Housing and Homelessness Agreement (NHHA) appeared to be a new initiative – the agreement had been in place since July 2018 and was established by the former Coalition Government.
“It is disappointing that the Albanese Government appears to be grandstanding on a policy that had already been in place for more than five years and provided $1.6 billion each year to states and territories to improve Australians’ access to secure and affordable housing across the housing spectrum,” Ms Jennison said.
“It also appears that total funding to support state affordable housing services is set to fall from $2.6 billion in the 2024/2025 financial year to $2 billion in 2027/2028.
“However, doubling homelessness funding to $400 million every year, matched in total by states and territories, and $1 billion for the National Housing Infrastructure Facility for crisis and transitional accommodation are both welcome initiatives as is the additional help for low income renters.”
Ms Jennison said it was time that the “us and them” narrative between renters and property investors was addressed by the Federal Government to remedy the rental crisis.
“The Labor Government has a significant role to play to ensure that everyone in this nation has access to secure housing – including the hundreds of thousands of new migrants that have arrived under its watch,” she said.
“I fail to see how that can happen unless the government incentivises investors to return to the market.
“Indeed, without an increase in property investment activity in the short- to medium-term, then the rental crisis will wind up being one of the lasting legacies of the Albanese Government.”
ENDS
For more information or to organise an interview with Ms Jennison please contact:
Bricks & Mortar Media | media@bricksandmortarmedia.com.au
