Rent spike risk limited, say Liberals

THE end of a subsidy for lowincome housing would have a limited impact in Tasmania because most of the money had been used to build accommodation for University of Tasmania students, the State Government says.

Tasmania has almost 1500 homes that receive a combination of state and federal subsidies under the National Rental Affordability Scheme to keep their rent 20 per cent below the market rate — but the scheme is coming to an end.

Most of the money invested in Tasmania went to the University of Tasmania — which built 770 apartments in Hobart and Launceston under the scheme, a government spokesman said.

“About half of these (NRAS) dwellings are managed by UTAS and more than half of those remaining are now under longer-term agreements with the State Government, which means their arrangements will continue,” he said.

“This leaves less than 23 per cent of NRAS properties possibly impacted over the next five years.

“The Tasmanian Government offers assistance to those that are eligible and encourages any Tasmanian who may be concerned to contact Housing Connect to see what assistance may be available for them in their situation.”

Labor’s housing spokesman Alison Standen said the demise of the scheme would increase the number of Tasmanians struggling to put a roof over their heads.

“The end of NRAS will bring rental increases of up to 20 per cent for around 1500 properties,” she said. “The first homes will come off the scheme this year, making a bad situation worse for Tasmanians looking for affordable rental accommodation.

“Tasmania’s rental market is already the worst in the nation. Many households are in rental stress, paying more than 30 per cent of their income on rent. There’s no excuse for the State Government not to be prepared for this.”

Greens leader Cassy O’Connor said the Government had failed to plan for the end of the scheme.

“They knew this was coming. They must have known low-income households in NRAS properties would be hit hard, yet they sat back and waited,” she said.

“Hobart is already the least affordable capital city for renting, and now hundreds of renters are going to see their rent skyrocket as the NRAS properties start to go entirely to the private rental market.”