Resolutions made by the recent National Cabinet regarding definitive action on housing have been welcomed by the industry this week.
At a press conference announcing the decisions, Prime Minister Anthony Albanese affirmed the best way to ensure more Australians have a safe and affordable place to call home is to boost housing supply.
“That’s why National Cabinet has agreed to an ambitious new national target to build 1.2 million new, well-located homes over five years from the 1 July 2024”, Albanese added.
This is an additional 200,000 new homes above the National Housing Accord target agreed by states and territories last year. The Commonwealth has committed to $3 billion for performance-based funding, as incentive for states and territories to make the reforms necessary to boost supply and affordability.
“This ambitious target will be supported by the Housing Support Program, a $500 million competitive funding program for local and state governments to kickstart housing supply in well-located areas”, Albanese said.
“Connecting to sewerage, connecting to water, connecting to energy supplies; in short, upfront money to get housing moving quickly.”
National Cabinet also agreed to a National Planning Reform Blueprint with planning, zoning, land release and other measures to improve supply and affordability.
The Blueprint includes promoting medium and high density housing in areas close to existing public transport connections, amenities and employment, as well as streamlining approval pathways.
Crucially, National Cabinet also agreed to a better deal for renters to harmonise and strengthen renters’ rights across Australia.
“This includes developing a nationally consistent policy to implement a requirement for genuine, reasonable grounds for eviction, moving towards limiting rent increases to once a year, phasing in minimal rental standards”, Prime Minister Albanese said, adding that these changes will make a tangible impact for the almost one third of Australians who rent.
Responding to the announcement, HIA Deputy Managing Director, Industry and Policy, Jocelyn Martin observed that ‘the ambitious targets announced by National Cabinet are welcome and HIA looks forward to working with all levels of government to deliver these new homes for Australian families’.
Real Estate Institute of Australia (REIA) President Hayden Groves said that killing off rent controls, suggesting possible reforms for states to help renters, a revised and funded housing target and long overdue planning overhaul are all things that deal with Australia’s severe housing shortage.
“We welcome the focus on building more homes and a boots on ground approach. It’s time to convert these words into action”, Groves concluded.
