Victoria launches Australian first affordable rental housing scheme

THE Victorian government is launching a new rental scheme that will see at minimum 2,400 homes made available to the state’s low to moderate income earners as rentals become increasing unavailable and unaffordable country-wide.

In an Australian-first, backed by government ownership, the Affordable Housing Rental Scheme will offer those eligible an affordable rental property for at least three years.

“The scheme will help sustain and grow affordable housing and ensure more Victorians have the safety, security and dignity of a home,” said Richard Wynne, minister for housing.

The scheme will be delivered as part of the government’s $5.3 billion Big Housing Build and will in May see Homes Victoria begin market engagement to find rental managers for the new properties.

“This Australian first program is a financially sustainable investment in boosting housing affordability and will encourage the rental market to provide more and better options for Victorians looking for a home to rent,” added Wynne.

This comes as the national rental vacancy again dropped across February, reaching 1.2%, at the same time as Victoria recorded the highest vacancy rate of the capital city’s at a still low and declining 2.3%.

Renters should be able to move in by the end of the year, with the first regional properties expected to be available in Ballarat, Greater Geelong and Bendigo, while the first metropolitan homes will be in Ascot Vale, Ashburton, and Heidelberg.

Rental rates at the properties will be based around location and the number of bedrooms, with metropolitan Melbourne homes in the scheme to be at least 10% below the median rent of the area.

Rental rates will also be capped at 30% of a median Melbournian income.

Meanwhile in regional Victoria, rental rates will reflect the median rent of the area, with rents also capped at 30% of the median regional Victorian income, with adding supply to the regions a top priority.

“The new Affordable Housing Scheme will offer an important new option to low- and moderate-income earners – including aged care, retail and hospitality workers – who need to find a secure rental,” said Wynne.

At least 500 homes will be in regional Victoria, with low and moderate income essential workers to be eligible in areas in regional Victoria with a workforce shortage.