Families earning up to $132,000 will be able to rent homes from the Victorian government as part of a scheme it says will help ease housing affordability concerns in the state.
On Friday, the housing minister, Richard Wynne, will announce the affordable housing rental scheme, which will make about 2,400 homes from the government’s $5.3bn “big housing build” available to rent.
In metropolitan Melbourne, rents will be set at least 10% below the median market rent of the area – and capped at 30% of the median income in Melbourne.
In regional Victoria, creating extra supply is the priority for the scheme. Rents will be set at the median market rental price for that area, as well as limited at 30% of the median income in regional Victoria.
Applicants do not need to be eligible for social housing to take part in the scheme, although people on the Victorian Housing Register will be encouraged to apply for relevant properties.
To be eligible for the scheme in Melbourne, singles can earn up to $62,860, couples up to $94,300 and families can have a combined income of less than $132,030. In regional Victoria, singles can earn up to $45,820, couples $68,730 and families $96,220 to be eligible.
At least 500 homes will be located in regional Victoria, including in Ballarat, Bendigo and greater Geelong. The first homes in Melbourne to become available will be in Ascot Vale, Ashburton and Heidelberg.
Jennifer Beveridge, chief executive of Tenants Victoria, said people leaving the inner city during the pandemic for outer suburbs and regions, as well as a wave of evictions after properties have changed hands, have pushed rental prices higher.
The median rental in regional Victoria is now $380 – just $20 less than that in Melbourne.
“Overall there are less rental properties available, particularly in the country areas. It’s having an impact on affordability as well as availability of rental homes, and people are being displaced across the state,” Beveridge said.
“People have lived for many years or decades or even their whole life in one particular town or regional city stretch, struggling on low incomes to find somewhere affordable to live.
“We’ve heard all sorts of creative options that people have developed for themselves. At the start of summer maybe living in a tent or a caravan was an OK option but it’s certainly not a solution to the housing crisis.”
Beveridge welcomed the scheme, saying new ideas were vital to tackle the issue.
“Now is the time to be creative and to explore ways to resolve these issues that aren’t going away anytime soon,” Beveridge said.
“However, we are concerned that this is taken out of a pool of properties that are available for social housing – the waiting list for social housing is extraordinarily long.
“We’d encourage the government not to take their foot off the pedal in terms of accelerating availability of that type of housing to Victorians as well.”
Wynne said the scheme will help sustain and grow affordable housing and ensure more Victorians have the “safety, security and dignity of a home”.
“The new Affordable Housing Scheme will offer an important new option to low- and moderate-income earners – including aged care, retail and hospitality workers – who need to find a secure rental,” he said.
The government will begin market engagement in the coming weeks to identify rental managers for the properties, with the first renters able to move at the end of this year. Any profits from the scheme will be reinvested into affordable housing.
Properties will be advertised through partner agencies and offered using an eligibility check and selection process.
Beveridge also called on the federal government to developing a national housing strategy, noting that for many people renting will be their only housing option in the long-term.
Earlier this week, prime minister Scott Morrison suggested Australians looking for rent relief should instead ‘buy a house’.
