COUNCIL to Homeless Persons is launching a new proposed funding model that would address the $11,400 per annum gap in renting affordable housing in Victoria versus renting social housing.
The new model would enable the Victorian government to convert the 7,000 affordable homes over the next four years already pledged to the state by the federal government into social housing.
Affordable housing is categorised as properties that charge 80% of market rent, while social housing is 30% of income plus Commonwealth Rental Assistance, which (LINK).
“We’re in the midst of the most serious housing crisis in living memory but that doesn’t mean it can’t be fixed. Unlocking more social housing through investment at both a federal and state level is the key to ending homelessness,” said Deborah Di Natale, CEO at Council to Homeless Persons.
The model proposes that the Victorian government meets the $11,400 average annual income gap between the two housing categories.
Currently Victoria has the lowest proportion of social homes in the country. At 2.9% of all households, Victoria falls behind the national average and every other state and territory.
“Despite welcome State Government initiatives like the Big Housing Build, our state is woefully behind when it comes to the level of social housing available,” added Di Natale.
“That’s why we’ve come up with a funding model that gives Victoria the flexibility to convert already promised affordable housing into social dwellings.”
”If federal investment in social housing to each State is based on population, the State Government needs to continue to chip in or there’s no chance of Victoria getting out of last place.”
On a global scale Australia itself if also playing catch up, with national social housing stock plummeting to 4.2%, which is 2.9% below the OECD average.
Council to Homeless Persons is calling on Colin Brooks, the Victorian housing minister, to bring the proposal to federal and state counterparts at the upcoming Housing and Homelessness Ministerial Council meeting.
In February, Brooks said the Andrews government would rectify growing youth homelessness with plans to build over 130 new homes to ensure young Victorians get off the streets and access more support.
“Rents are accelerating at break-neck speed, leaving thousands of Victorians at serious risk of becoming homeless,” said Di Natale.
“The right investment in social housing can end homelessness. We just need governments to work together and act.”
Median rents have grown by 12.5% over the last 12 months, 16.9% over five years and 36.4% over the decade, according to the Victorian government’s latest rental report.
Homelessness is also up across the state, increasing by 76% in the past 15 years and 24% in the past five years, according to Census data.
With January seeing over 640,000 Australian households whose housing needs are not being met, with the number is set to jump to 940,000 by 2041, according to Community Housing Industry Association.
