This article is from the Australian Property Journal archive
THE Productivity Commission have released their landmark review of the National Housing and Homelessness Agreement (NHHA) and it has some strong criticisms of housing policy and supply in Australia.
The report aptly titled ‘In need of repair’ slams the agreement and says it is ineffective as it doesn’t hold governments accountable nor encourage the collaboration of governments to work together on the issue. The report says that the next intergovernmental agreement and proposed NHH plan is an opportunity for governments to combine on a national reform agenda to make housing more affordable. Demand for government-funded housing and homelessness services is only increasing as a result of rising rents and low vacancy rates.
The report states that the next agreement should be focused on improving the affordability of the private rental market and the targeting of housing assistance. It also asserts that a key factor in making housing more affordable is the capacity of low-income renters to pay for housing and the removal of constraints on new housing supply.
The Property Council of Australia supports the findings of the Commission into the agreement, with Property Council chief executive Ken Morrison congratulating the Commission on the report.
“The National Housing and Homelessness Agreement report is a damning indictment of housing policy and supply in Australia, and reinforces many of the Property Council’s long held reform priorities,” he said.
“Today’s report reaffirms that we will remain in a housing supply crisis until we improve our planning for new homes of all types.”
“We congratulate the Productivity Commission on this piece of work and welcome its recommendation for a major overhaul of housing policy within a framework agreed to by all levels of government,” Morrison added.
The Productivity Commission believes that if the right changes are made to the next agreement, it will help more low‑income households in the private rental market and reduce the number of people who experience homelessness or need social housing. Some of the key changes include state and territory governments committing to firm targets for new housing supply; billions of dollars used for direct housing assistance to be put towards those who meet it most to avoid homelessness; and social housing.
In order to implement these changes, a flurry of methods can be used to support them such as: principles to guide how housing assistance should be provided and assistance dollars spent, a broader scope, covering all forms of direct housing assistance and achievable and measurable targets focused on outcomes for people.
