Crisis for renters looms
ALMOST 500 families across Townsville face rent increases of $200 a week or eviction under the phasing out of a federal rental affordability scheme, a social services body has warned.
Queensland Council of Social Services says the axing of the National Rental Affordability Scheme amid a housing crisis spells disaster and is unacceptable.
“We’ve seen about 2000 Queensland households exit the scheme already with community organisations reporting that people have been asked to pay $200 extra per week in rent or else vacate the property,” QCOSS chief executive Aimee Mcveigh said. “With rental vacancy rates at record lows across the state and 50,301 people already on the social housing register, the end of the federal government’s scheme spells disaster.
“Neither side of politics has committed to extending or replacing NRAS this federal election. This is a federal government choice that will make families homeless. It’s simply unacceptable.”
The body provided figures on NRAS agreements in the federal electorate of Herbert showing 469 were due to expire over the next three years.
They are spread throughout the city but most are in Kelso (110), Mount Louisa (79), Shaw (54), Deeragun (53), Cosgrove (51) and Belgian Gardens (33).
Townsville was a key centre for the scheme introduced by
Labor in 2008 but axed by the Coalition in 2014.
Under the scheme, landlords received tax and cash benefits, while tenants receive 25 per cent discounts on market rents.
The scheme led to the development of hundreds of new homes but agents say it also caused grief for other landlords by depressing rents at a time when the mining bust caused huge rental vacancies in Townsville – a situation now reversed.
Auctioneer Wayne Nicholson, who previously managed a rental portfolio of 270 NRAS homes in Townsville, said its axing would cause pain for tenants, although he expected rent increases to be lower, ranging up to $100 a week.
Mr Nicholson stopped short of recommending a repeat of the scheme, but said governments should incentivise investors to build more homes.
Gribbin Realty principal John Gribbin said rental schemes shouldn’t come in a form that cruelled everybody else.
He also believed governments needed to build more social housing.
According to Homelessness Australia, cuts to the value of total federal social housing and
WITH RENTAL VACANCY RATES AT RECORD LOWS ACROSS THE STATE … THE END OF THE FEDERAL GOVERNMENT’S SCHEME SPELLS DISASTER
AIMEE MCVEIGH
homelessness spending in the past decade will soon exceed $1bn, while house prices have risen 50 per cent and rents 31 per cent.