Government support for housing very positive move

THE introduction of legislation by Treasurer Scott Morrison to deliver reforms promised in this year’s Federal Budget will promote affordable housing as a viable investment in Australia.

HIA deputy managing director Graham Wolfe said private investment in affordable housing by institutional investors has been overlooked for too long.

“Supporting the delivery of affordable rental housing on a large scale, that is not government owned public housing, has been a conundrum in Australia,” Mr Wolfe said.

“Managed investment trusts are part of the solution to long term financing for affordable housing,” he said.

“These reforms will open that door.

“Affordable housing needs to be recognised as an asset class in its own right and given the appropriate support.”

Mr Wolfe said it is critical, however, that promoting new investment for coordinated affordable housing projects is not at the expense of other types of residential investment.

“Every sector of the housing continuum needs to be supported with the right policy settings,” he said.

“Private investment in all forms of new housing should be supported by the government.”

HIA will review the draft legislation and looks forward to working with the government to promote improved supply of affordable housing.