New rental scheme

The Victorian Government has announced an Australian first rental scheme.

Set to make at least 2400 homes available to low to moderate-income earners across the state, the Affordable Housing Rental Scheme will allow eligible income earners an affordable rental property for at least three years.

These properties are part of the $5.3 billion Big Housing Build and will be owned by the government.

Next month, Homes Victoria will begin identifying rental managers for the new properties, and the first renters are expected to be able to move into homes as early as the end of 2022.

Many households across Victoria are experiencing rental stress - spending more than 30 per cent of their household income on rent.

Rent prices will be based on the property's location and the number of bedrooms.

Properties that are part of the scheme in regional Victoria will be set at the median market rental price for that area, and have the cap set at 30 per cent of the median income in that area.

At least 500 of the homes will be located in regional Victoria.

Low and moderate income workers, including many healthcare workers and carers, will be eligible in areas of workforce shortage in regional parts of the state.

Housing, minister Richard Wynne said the scheme will help sustain and grow affordable housing, and make sure 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."

"This Australian first program is a financially sustainable investment in boosting housing affordability and will encourage the rental market to provide more and better options for Victorians looking for a home to rent."

In metropolitan Melbourne, prices will be set at least 10 per cent below the median market rent of the area, and have the same cap as regional Victoria, set at 30 per cent of a median income in Melbourne.

Properties will be advertised through partner agencies and offered using an eligibility check and selection process. Eligible households will be encouraged to apply for relevant properties.