Yesterday (23 December), the Albanese Government began to establish an initial set of affordability standards for Build to Rent developments to help increase housing options for those that need it the most.
The affordability standards will support front line workers on moderate incomes and other working Australians to find secure, long term rental accommodation in eligible Build to Rent developments.
As part of this initiative, the Albanese Government aims to build more for sale and for rent houses.
Build to Rent tax incentives are part of the Government’s broad and ambitious $32bn Homes for Australia plan to build 1.2 million well-located homes by 2029 and take housing pressures off Australians.
The Government has finalised a legislative instrument to establish the initial standards for affordable dwellings, following the recent passage of primary legislation that delivers tax incentives to encourage investment and construction in the Build to Rent sector.
Under the primary legislation, at least 10% of dwellings in a Build to Rent development must be affordable. The standards require those dwellings to be rented at 74.9% or less of the market rate and set out income thresholds for eligible tenants.
The Government has announced that these affordability standards are the first tranche of requirements for the affordable dwellings in eligible Build to Rent developments.
Over coming months, the Government will work closely with stakeholders on the next tranche of affordability standards.
These standards will require community housing organisations to be involved in managing affordable dwellings, whilst preventing Build to Rent operators from including no-fault evictions clauses in tenancy agreements.
They will also ensure that a proportion of affordable dwellings are reserved for lower income earners based on their household income.
Industry estimates show the Build to Rent measure will support the construction of around 80,000 new rental homes over the next decade that will offer longer tenancies and affordable options, giving renters more security and stability.
The Government’s Build to Rent measure will operate in addition to state and territory initiatives designed to support the Build to Rent sector – a model that has been used successfully overseas to increase housing supply.
This Build to Rent measure complements other measures put in place by the Albanese Labour Government to support renters, including increasing Commonwealth Rent Assistance by 45% to help over one million households with rental costs, and working with states and territories to ban no-fault evictions and improving rental standards through our Better Deal for Renters.
