Rental-Insights-A-COVID-19-Collection - Flipbook - Page 9
RENTAL INSIGHTS:
DETERIORATING
RENTAL AFFORDABILITY
What is the relevance
to Australian policy?
The findings on social housing suggest
that to ensure affordability in the sector,
the standard formula sets rents too
high. At the same time, other research
demonstrates that, even at this level,
rental revenue collectable by public
housing authorities is insufficient
to fund essential management,
maintenance and tenant support
—let alone new housing provision6.
This points to the need for enhanced
social security benefit rates and/or
additional public subsidy for the
provision of social housing.
When it comes to low-income tenants
being pushed into rental stress by the
pandemic, part of the answer lies in the
fact that such a large proportion are—in
normal times—perched only marginally
above this threshold. It also reflects
that, for all their benefits, even at their
initial high rates, government income
protection measures failed to protect
all these vulnerable tenants.
… even at their initial high rates, government income protection
measures failed to protect all these vulnerable tenants.
6
Independent Pricing and Regulatory Tribunal New South Wales 2017, Review of rent models for social and affordable housing. Final Report, Special
Reviews. Sydney, New South Wales. https://www.ipart.nsw.gov.au/files/sharedassets/website/shared-files/pricing-reviews-section-9-publicationsreview-of-social-and-affordable-housing-rent-models/final-report-review-of-rent-models-for-social-and-affordable-housing-july-2017-[w172737].pdf
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