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Our Noticeboard highlights specific issues in detail. In the News is a list of tenancy and housing articles in the the ACT, national and international news. Go to our list of articles and click on them for details.

Articles are sourced from TSN NATIONAL NEWS. The National Tenant Support Network (National TSN) is an independent, unincorporated not-for-profit initiative delivering a range of services to social and affordable rental housing stakeholders throughout Australia and New Zealand. For more information about TSN click here

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This page last updated 13 March 2008

ACT

v RELIEF IN SIGHT FOR ACT RENTERS
Monday, 10 March, 2008, John Thistleton, The Canberra Times

v INVESTORS REMAIN INTERESTED IN ACT HOUSING MARKET

ACT Govt media realease 13 December 2007

National

v GOVERNMENT TO BUILD 100,000 AFFORDABLE RENTAL PROPERTIES AND

KICK-START HOUSING CONSTRUCTION REFORM

Monday, 03 March, 2008 Media release: Prime Minister Kevin Rudd

v HOWARD GOVERNMENT LEGACY: MORE PEOPLE THAN EVER IN NEED

OF AFFORDABLE HOUSING

Thursday, 24 January, 2008. Media release: The Hon. Tanya Plibersek MP

Minister for Housing; Minister for the Status of Women.

v INFLATION SHOCK PUTS PRESSURE ON RATES

Thursday, 24 January, 2008. By Tim Colebatch, Canberra THE AGE

v PUBLIC HOUSING WAITING LISTS SOAR

Wednesday, 23 January, 2008, Australian Associated Press ~ AAP

v TACKLE RENT BIDDING SERIOUSLY

Thursday, 17 January, 2008. Media release: Kim Booth MP Tasmanian Greens

International

v MY SEVEN-POINT PLAN TO END THE HOUSING CRISIS

By Christian MacWhirter, The Herald (Scotland) Tues 22 Jan 2008

THE details:z

v RELIEF IN SIGHT FOR ACT RENTERS
Monday, 10 March, 2008
By John Thistleton
The Canberra Times

Long-suffering renters in Canberra may get relief from the nation's highest rents and tightest vacancy rates when the ACT becomes the first jurisdiction in Australia to bring institutional investment into the rental market.
A lack of housing supply has been blamed for ACT apartment rents rising 25 per cent during the past year to a median of $420 a week.
Hea of the ACT Chief Minister's housing affordability taskforce David Dawes said several sites were about to be bundled together in an expressions of interest offering to the market. The Government is looking at establishing 400 houses and units at greenfield locations in Gungahlin and in-fill sites elsewhere in Canberra.
While institutions are still assessing the Federal Government's National Rental Affordability Scheme, which will offer annual subsidies of $8000 a dwelling in tax credits, Mr Dawes said the ACT had been working on its strategy since April last year when it launched a housing affordability action plan.
He said the Commonwealth's initiative was a bonus.
"Things are happening, it's a bit of a moving feast I suppose. It is good that it is on the radar of the Commonwealth and I think it will enhance our package," he said.
"When we go out with expressions of interest we will narrow it down to a couple of the institutions that can do it. These sorts of things may lend themselves to a consortia, to finance, build and manage it."
The Commonwealth set last week a new target of 100,000 rental properties across Australia, and said it would create a new "asset class" because there was little investment from institutional investors in residential property in Australia.
Leighton Properties NSW manager Mark Gray said the Federal Government was going in the right direction, but whether it was enough to achieve the scale of development institutional investors would require remained to be seen.
"There's not enough return. On residential, whether affordable housing or not, is 3 per cent on your money. No institution can afford to address it at that level. There has to be sufficient incentive to drive it.
"Today it is of more interest than it was last week, put it that way."
Stockland's residential business chief executive, Denis Hickey, said the Federal Government's policy recognised the need to create a viable residential asset class in Australia.
Australia was undersupplied with new housing at the rate of about 20,000 dwellings a year, and prices of many new houses and rental accommodation costs were out of reach for a growing part of the population.
"We recognise that there is no silver bullet solution to affordability, as it is a complex issue with a long history."

ACT Council of Social Service director Ara Cresswell said high public-sector incomes had skewed affordability indicators and the ACT's median rent for a three-bedroom home was the highest in Australia.
She said people were suffering from housing stress.
"Some working families are not putting food on the table in order to pay the rent.
"If there's a health crisis or some other crisis, families have to make choices whether to pay the rent."
Mr Dawes said bringing institutions into the market would still leave room for "mum and dad" investors in Canberra's rental sector.
"It's a fine balance, but I really do think when you look at the rental crisis, where people of all ages are queuing up to get into rental [home] exhibitions, it is very unhealthy.
"We really need to tackle it in a bigger scale so hopefully we can get people with a roof over their heads.
"That's the objective of all this. If we don't see eventually the stabilisation and lowering of some of the rents, we haven't achieved what we've set out to do."
http://canberra.yourguide.com.au/news/local/general/relief-in-sight-for-act-renters/1199286.html

v GOVERNMENT TO BUILD 100,000 AFFORDABLE RENTAL PROPERTIES AND
KICK-START HOUSING CONSTRUCTION REFORM

Monday, 03 March, 2008, Media release: Prime Minister Kevin Rudd

The Australian Government today formally established a significantly expanded National Rental Affordability Scheme.

The National Rental Affordability Scheme will fund tax incentives for investors to build up to 100,000 new affordable rental properties.

The new target of 100,000 properties doubles the Government’s pre-election policy of 50,000 new affordable rental properties.

This doubling of the number of affordable rental properties to be built under the scheme reflects the severity of the housing affordability problem in Australia.

This measure is one of a range of policies the Australian Government is implementing to assist Australian families under financial pressure.

It was also announced today that the Government will invest up to $30 million to streamline and move online, the approval of Development Applications.

100,000 new affordable rental properties

The National Rental Affordability Scheme is an innovative policy initiative to create a new ‘asset class’ of affordable rental properties, because there is currently very little investment from institutional investors in residential property in Australia.

Under the Scheme, the Commonwealth will provide private investors with tax credits of $6,000 a year for ten years for new properties that are rented at 20 per cent below the prevailing market level.

States and Territories have agreed to provide $2,000 per home either through cash payments or in kind, such as via the provision of cut price land or concessions on stamp duty.

The initiative would mean, for example, that rent on a new average three bedroom unit would fall for $350 a week to $280 a week – a $70 saving.

It was announced in Brisbane today that if the previous target of 50,000 is reached by 2011-12, the program will expand if market demand by both renters and investors is strong to allow for the construction of 100,000 properties from 2012 onwards.

Industry forecasts suggest that the deficiency of housing stock will not be eliminated by 2011-12.

Streamlined planning approvals

The Government will invest up to $30 million to roll-out nationally electronic development assessments (eDAs) and online tracking services to streamline planning approvals and cut the cost of new homes.

Currently, delays in planning approvals create ‘holding costs’ such as interest and land taxes, which the housing industry says push up the price of new homes by tens of thousands of dollars.

Starting with high growth areas and then moving to all councils by the end of next year, the program will fund IT infrastructure, particularly software, so local governments can streamline their planning processes.

The implementation of this program will be discussed at the meeting of the Local Government & Planning Ministers’ Council in Brisbane on March 27 this year.

The program will reduce costs and development times, thereby reducing the costs ultimately passed on to homebuyers. The effect will be to reduce the cost of new developments and individual building projects, thereby improving the affordability of housing.

This initiative will be implemented as part of the Housing Affordability Fund, which will invest $500 million over the next five years to reduce infrastructure charges and streamline planning approvals processes – to make it easier for working families to buy new homes.

~:ends:~

v HOWARD GOVERNMENT LEGACY: MORE PEOPLE THAN EVER IN NEED

OF AFFORDABLE HOUSING

Thursday, 24 January, 2008. Media release: The Hon. Tanya Plibersek MP

Minister for Housing; Minister for the Status of Women.

A report released today exposes the Howard Government's housing neglect - there are more people than ever before in need of affordable housing.

The Howard Government cut $3.1 billion from social housing in real terms during its time in office.

These funding cuts mean that low income working families are finding it harder than ever to get affordable housing.

The three reports released by the Australian Institute of Health and Welfare look specifically at public and community housing.

The data shows that public housing has become more tightly targeted. A third of Australians on public housing waiting lists are waiting more than two years for a public housing place.

The previous government's $3.1 billion real funding cut to the Commonwealth State Housing Agreement has forced the States and Territories to target the provision of social housing even more tightly to those in greatest need.

ABS data shows that in 1995, 22 per cent of applicants for social housing were accommodated. Ten years later, only 14 per cent were able to move off waiting lists and into housing.

The previous government's decade of neglect means that now the most disadvantaged Australians are waiting longer than ever just to get a roof over their heads.

Many low income working families are now missing out on social housing altogether.

These are the same working Australians suffering rapid increases in rent, which grew by 6.4 per cent in 2007 - more than double the rate of inflation.

The Rudd Labor Government is committed to working with the States and Territories to boost the supply of affordable housing.

While there are no silver bullets to housing affordability, the National Rental Affordability Scheme (NRAS) will increase the supply of affordable rental properties by 50,000, helping as many households to meet rising cost of living pressures and save to buy their own home.

The AIHW Report shows there has been some growth in the community housing sector. The Government's NRAS will substantially grow the community housing and affordability housing sector.

~:ends:~

v INFLATION SHOCK PUTS PRESSURE ON RATES

Thursday, 24 January, 2008. By Tim Colebatch, Canberra THE AGE

AUSTRALIA'S 3 million home buyers are likely to be hit by another interest rate rise - the third in six months - after inflation rose to its highest level in 16 years.
Most economists believe the Reserve Bank will act to lift rates when its board next meets on February 5 - unless global share markets continue to dive.
Inflation figures released yesterday were far worse than expected, as higher petrol prices, bank charges and housing costs pushed the underlying inflation rate up by 1.05% in the December quarter, and 3.6% for the year. Petrol prices alone rose 14.3% for the year.
The Reserve Bank is expected to respond within a fortnight by raising official interest rates by 0.25 of a percentage point, adding $50 a month to repayments on an average $250,000 home loan.
In addition, mortgage holders have been hit with rises unilaterally imposed by banks and other lenders, which are paying more for the money they lend to home buyers as a result of the high-risk loan market meltdown in the United States.
But they believe an increase is less likely if global sharemarkets resume the falls of recent days.
Markets began to rebound yesterday, with doom giving way to gloom. Twelve days of falling share prices that had knocked $300 billion off the value of Australia's top 200 stocks were partly retraced, as the S&P/ASX200 Index climbed by 225 points, or 4.3%.
The turnaround came after the US Federal Reserve intervened to stop the rout on global stockmarkets by slashing 0.75 of a percentage point off US interest rates, cutting its benchmark federal funds rate to just 3.5%.
But that will cut little ice with Australia's Reserve Bank, after the Bureau of Statistics reported that inflation is running even higher than markets had expected. At 3.6%, underlying inflation is now clearly outside the Reserve's target band of 2% to 3%.
The Reserve as usual made no comment on the data yesterday, but in an uncompromising speech in London last Friday, Reserve governor Glenn Stevens played down the falls on financial markets and warned that "uncomfortably high" inflation is the key problem facing the economy.
After being briefed yesterday by Mr Stevens and Treasury secretary Ken Henry, Treasurer Wayne Swan also played down the likely consequences of the financial market turmoil for the economy, and emphasised the imperative of bringing down inflation.
"As we've seen in recent days, we're not immune from turbulence in the United States," Mr Swan said.
"But all the advice I'm receiving is that we are well placed to withstand that international turbulence.
"Today's CPI figures show why the Rudd Government has made tackling the inflation challenge a significant priority. It's pretty clear that the primary cause of underlying inflation is basically the twin investment deficits: skills and infrastructure.
"These pressures have been building from the beginning of 2006. These figures are proof that elevated inflation is the Liberal Party's parting gift to the Australian people."
But the bureau figures show that in 2007, half the growth in overall prices came in just two areas: housing costs and rising finance charges. And that was before the banks made their controversial rises this month to pass on higher lending costs to home mortgages.
In 2007, the cost of financial services grew by 5.3%, home purchase costs rose by 4.3%, rents by 6.4%, electricity bills by 5.7% and water bills by 5.9%. By the end of 2007, the banks had already raised lending rates to all customers except those with mortgages.
Food prices rose just 1.2%, with falling fruit prices balancing out the rising cost of bread, milk and cheese.
Shadow treasurer Malcolm Turnbull said Labor was playing the blame game and spinning "fairy stories about the important challenge of inflation". Inflation, he said, was mainly due to rising global prices for oil and high housing costs, for which the states were responsible.
In sharp contrast to Mr Swan, Mr Turnbull told the Reserve Bank board it would be prudent to "stay their hand, and watch and wait for a little while longer" rather than raise interest rates next month.
"What is happening elsewhere in the world _ will inevitably slow growth in Australia because we live in an integrated global economy," he said.
A Reuters survey of 22 financial market economists, however, found 14 expect the Reserve board to raise rates at its February meeting, while three others expect it to delay only for a month or two. Five think there will be no rise.
The Westpac-Melbourne Institute index of leading indicators further highlighted the momentum in the economy, rising sharply to 6.4% in November.
Westpac chief economist Bill Evans said rising household incomes from higher commodity prices, rising wages and tax cuts would drive the economy in 2008.

"http://www.theage.com.au/news/national/home-loan-rates-tipped-to-riseagain/2008/01/23/1201024993875.html"

v PUBLIC HOUSING WAITING LISTS SOAR

Wednesday, 23 January, 2008, Australian Associated Press ~ AAP

Almost 180,000 of the poorest Australians are on waiting lists for public housing, with seven per cent in desperate need of a home.

The Australian Institute of Health and Welfare released a series of reports on government subsidised housing in the 2006/07 financial year.

The reports show there were 333,085 households living in public rental dwellings, 33,557 in community housing and 12,622 in indigenous housing.

"People in crisis situations are one of the main target groups for these housing services, for example, people who are homeless or people whose life and safety are at risk in their accommodation," housing assistance unit head Tracie Ennis said in a statement.

In the year to June 2007, almost 27,000 households were newly allocated public rental housing.

Roughly a third of those households had waited two years or more to be allocated a home, and in June 2007 there were 176,321 households on waiting lists for public rental housing.

Almost 12,000 - or seven per cent - of them were classified as being in the `greatest need' or desperate for a home.

Public housing is managed in a way similar to a landlord/tenant relationship, but the government often subsidises tenants' rents.

Of those living in public housing in 2007, 87 per cent received a rental rebate from the government and the rest paid market rent.

About 80 per cent of those tenants paid out between 20 per cent and 30 per cent of their income for rent.

Community housing is handled differently to public housing, with a community housing organisations in charge of all tenancy, property, and financial functions.

Between mid-2006 and mid-2007 there were 8,741 new community housing households established, with 68 per cent special needs tenants.

Eleven per cent of community housing tenants paid more than 30 per cent of their income in rent.

The majority - 57 per cent - paid more than 20 per cent but less than 25 per cent of their income.

In the much smaller market of indigenous housing, 81 per cent received a rental rebate and about 62 per cent paid more than 20 per cent but less than 30 per cent of their income on rent.

Six per cent of the indigenous housing dwellings were deemed overcrowded by departmental staff, while 18 per cent were under-utilised, with two or more spare rooms.

And 10,835 households were on waiting lists for indigenous housing at the end of June 2007.

v TACKLE RENT BIDDING SERIOUSLY

Thursday, 17 January, 2008. Media release: Kim Booth MP Tasmanian Greens

The Tasmanian Greens described as “wishy-washy hand-wringing” the Attorney-General’s, Steve Kons, response to the unethical practice of rent bidding, and have demanded that the government seriously looks at all legal avenues available to ensure that the practice is banned.

Greens Shadow Housing spokesperson Tim Morris MP was also critical of the Real Estate Institute of Tasmania (REIT), saying that REIT must also take action to stamp out rent bidding by its members, saying that there are at least three agents who openly practice rent bidding in the Launceston area; two of whom are members of the REIT.

“The wishy washy hand-wringing response by the Attorney General, Mr Kons, yesterday beggars belief! How on earth can he be taken seriously when on one hand he states that rent bidding is not a practice that the state government “endorses or encourages” but then dodges any responsibility of doing anything about the practice by handballing the problem back to the real estate industry,” Mr Morris said.

“Industry-self regulation obviously is not working, since the practice is occurring around the State, and the Property Agents Board’s rejection of the Minister’s request to include a ban on rent bidding in a voluntary Code of Practice, demonstrates a considerable lack of interest.”

“The spokesperson for the Real Estate Institute of Tasmania (REIT), Mr Soundy said yesterday on radio that rent bidding was not occurring, yet two of the listed REIT members, Bushby First National and Woolcock Partners appear to be practicing rent bidding.”

Mr Morris said that Peter Lees Real Estate, Bushby First National and Woolcock Partners all openly advertise rental properties in a manner that clearly utilises some of the rent bidding methods as defined by the Queensland Office of Fair Trading which states that;

“Rent bidding can include:

a prospective tenant offering more than the advertised price without being prompted;
an agent requesting that prospective tenants offer more than the advertised price;
advertising a property with a rent range, e.g. $225–$270 or “offers above $250”;
advertising a property with no rental price; or holding a rent auction.”

“Mr Kons claims that the Government is trying to stamp out the practice of rent bidding yet at least three agents are continuing to openly advertise on the internet as well as at least one in a local paper.” (See the Examiner Wednesday 16 January 2008, pg 28.)

“Whether the Minister likes it or not, it is his job to intervene and take concrete action to make rent bidding illegal, or this Lennon government will never be considered genuine when it comes to the critical issue of affordable housing,” Mr Morris said.

~:ends:~

v INVESTORS REMAIN INTERESTED IN ACT HOUSING MARKET

ACT Govt media realease 13 December 2007

The total value of housing finance commitments by ACT individual investors for new and existing dwellings increased by 26.5 per cent year on year to October 2007, outstripping the national average of just 11.6 per cent according to a report released today by the Australian Bureau of Statistics.

Chief Minister Jon Stanhope said the increase in lending for homes came on top of ABS data released earlier this week showing the ACT had the strongest year on year growth in the number of housing finance commitments for owner occupiers of all States and Territories.

"In the month of October 2007, the investor share of ACT housing finance was 30.3 per cent of the total value of housing commitments in original terms, above the national average of 27.3 per cent," he said.

“Continued investor interest coupled with an acceleration in land releases under the ACT Government’s Affordable Housing Strategy indicate that we can expect to see a steady increase in rental housing stock available to Canberrans in the future.

Mr Stanhope said yesterday’s auction of up to 750 housing blocks at the Casey 1 Estate reflected the effectiveness of the ACT Government’s strategy to make housing more affordable.

“I am very pleased a local consortium has purchased this land for housing development,” Mr Stanhope said. ”Under the Affordable Housing Strategy this development will see 15 per cent of blocks developed for housing costing less than $300,000.

“The ACT Government will continue to release land in conjunction with other measures including providing a range of stamp duty relief to first home buyers to make housing more affordable for more Canberrans,” Mr Stanhope said.

Statement Ends

v MY SEVEN-POINT PLAN TO END THE HOUSING CRISIS

By Christian MacWhirter, The Herald (Scotland) Tues 22 Jan 2008

Well, it was nice while it lasted. Until recently, the Scottish Government seemed to be talking sense about housing. It had quietly abandoned that manifesto commitment to giving a £2000 bung to first-time buyers. The SNP minister, Stewart Maxwell, said the priority was to improve planning laws to promote house building and abolish or curb the right to buy council homes. Hear, hear.

Unfortunately, he takes a step backwards today by announcing a £24m shared-equity scheme to first-time buyers in Scotland. This means the state giving tax-free loans to people who can't afford the excessive prices being charged for those pokey flats that are being pushed up everywhere. This is economically illiterate.

All that shared equity will do, in a condition of housing scarcity, is push prices up further, put public money in the pockets of estate agents and land yet more young families with loans they cannot afford. Make no mistake: these are sub-prime loans underwritten by the government.

They are an incentive for people to enter a market that is profoundly oversold and due for a crash. Those shared-equity home owners will see their 60% stake drop in value. And they will also have to shoulder the costs of maintaining a difficult-to-sell property in a time of declining or static house values.

~:ends:~

Comments 28

http://www.theherald.co.uk/features/featuresopinon/

v TSN

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Your feedback is valuable! Contact the national Tenant Support Network: TSN@thenexus.org.au