AUSTRALIA’S housing shortage only continues to create more concern, however the NSW government are taking steps to alleviate the pressure by partnering with the community housing sector.
The government has outlined the plan to deliver a $230 million development of 300 new homes built on crown land at Elizabeth Street, Redfern. The deal will see a consortium of leading housing provider Bridge Housing and national infrastructure developer Capella Capital combining to bring this development to life.
Minister for Planning and Minister for Homes Anthony Roberts said the development will see around 300 new homes built, including over 100 social housing dwellings and a new 3,500 square metre community facility.
“We’re transforming Sydney’s inner city to deliver multiple benefits to the local community, including much-needed new housing close to jobs, public transport and open space,” Roberts said.
“Land and Housing Corporation (LAHC) is proud to be partnering with Bridge Housing and Capella Capital on this project, demonstrating the NSW Government’s commitment to working with the community housing sector to leverage private capital and expertise that delivers a diverse mix of housing and benefits for the Redfern-Waterloo community.”
UDIA – the Urban Development Institute of Australia – have shown their support behind the NSW Government’s plan.
UDIA have been pleading with both political parties to make an important contribution to the National Housing Accord within their Manifesto – ‘Let’s Tackle The Housing Shortage in NSW!’
“The model announced today, is a good step forward and should be used as an exemplar of how Government, the community housing sector and the private industry can work together to tackle the housing supply and affordability crisis gripping NSW,” CEO of UDIA said.
“Utilising government land alongside private industry investment enables costs to be shared and risks to be reduced,” he added.
According to the Community Housing Industry Association (CHIA), NSW has a shortage of 200,000 while there is a waitlist of almost 60,000 people trying to access social housing. This development, expected to commence construction in 2025 is just a minor improvement when comparing it to what else is expected to be delivered by the NSW Government over the course of the next five years. The National Housing Accord has the goal of 300,000 new affordable and well-located homes over five years from 2024 and the NSW Government will be expected to contribute largely to that figure.
The NSW Government’s goal to make address the issues faced by home-buyers has also made some more progress with the Shared Equity Home Buyer Helper officially launching on the 23rd of January. The scheme is targeted at key worker first home-buyers as well as single parents and singles aged 50 or older. It has already registered plenty of interest amongst nurses, teachers and police officers which would allow them to buy their first home with a deposit as low as 2%.
According to Premier Dominic Perrottet, the NSW Liberal Nationals Government is set to cover 40% of the cost of a new home or as much as 30% for an existing home bought by eligible home buyers with a deposit of 2% or more.
“Today is a great day for single parents, singles older than 50 and first home-buyer key workers who have been struggling to break into the market and buy their own home to live in,” Perrottet said.
“It’s exciting to see the interest we’ve already received and to know that this initiative will help make the dream of home ownership a reality for thousands more people across this state.”
Within the shared equity home buyer helper, 3000 places will be available each year for 2 years while participants must have a maximum gross income of $90,000 for singles and $120,000 for couples.
Treasurer Matt Kean said the $780 million shared equity initiative was part of a broader $2.8 billion housing package.
“Just like First Home Buyer Choice, Shared Equity Home Buyer Helper is a pathway forward for eligible home buyers who have been working to save a deposit but buying their own home has remained out of reach,” Mr Kean said.
“Smaller deposits, no lenders mortgage insurance and no interest on the Government’s equity share means this initiative is a great option for eligible singles and key workers who no longer want to rent and prefer the security of home ownership.”
