The Albanese Government this week announced the National Housing Accord, a landmark agreement to address one of our nation’s biggest economic challenges: the supply and affordability of housing.
The Accord recognises most of this supply needs to come from the market, with the government playing a key role in enabling and kick-starting investment to support the construction of 1 million homes up until 2029.
As the Government put it in their press release, it “wants more Australians to know the security of decent housing and more Australians realising the aspiration of home ownership.
The federal budget hopes to deliver $350 million in additional federal funding to deliver 10,000 affordable homes over five years from 2024, on top of the government’s existing election commitments. This funding will incentivise superannuation funds and other institutional investors to invest in social and affordable housing by covering the gap between market rents and subsidised rents.
The National Housing Accord could prove a welcome measure that seeks to address Australia’s housing affordability crisis, which has been exacerbated by years of under-investment in housing construction. By incentivising the building of new homes in popular regions, the Accord will help to increase the stock of affordable housing and make it easier for first-time buyers to purchase in the area they want to live.
The agreement is designed to be a partnership between all levels of government, with the federal government pledging to match the state and territory governments’ commitment to 10,000 affordable homes.
It is hoped that this new National Housing Accord will lead to real progress on tackling the issue.
Reaction To The National Housing Accord
The overall reaction to the announcement has been positive.
Ken Morrison, Chief Executive of the Property Council of Australia, said the agreement is ambitious and collaborative–but more needs to be done to see results.
“We commend the Government for making housing supply and affordability a centrepiece of this budget and for striking an agreement with the states and territories,” Mr Morrison said.
“Australia is facing a housing affordability crisis, and as the Productivity Commission found last month, greater housing supply needs to be a key solution.
“The National Housing Accord is a very welcome commitment, and we thank the Government for engaging with the Property Council on this initiative.
“Achieving the Government’s target will require more tangible actions than have been announced tonight, and we look forward to working with the Government on practical steps to boost supply.”
Housing Industry Association (HIA) managing director Graham Wolfe said the Accord will help identify ways to maintain a stable level of housing supply.
“A structural improvement in housing affordability can only be achieved for all Australians if the supply of housing is sufficient to meet the needs of the whole community,” he said.
“HIA looks forward to the formation of the National Housing Supply and Affordability Council — the Council must steer Housing Australia in the collection and reporting of housing data that shines a light on our progress towards the target of 1 million new homes.”
Sharon Callister, CEO of Mission Australia, said that the announcement of the Accord is a “very promising” beginning for improving housing affordability.
“The announcement of the National Housing Accord acknowledges that the stark shortage of social and affordable housing, soaring cost of renting and resulting rental stress, declining availability of affordable rentals and rising cost of living are currently accelerating Australia’s housing and homelessness crisis,” she said.
Benefits of Investing In Social Housing – Such As Those Set To Be Created By The National Housing Accord
Investing in social housing projects can have a positive impact on a number of different levels. Perhaps most obviously, it can provide much-needed homes for people who are struggling to afford rent. In addition, social housing developments can help to create jobs and stimulate economic activity in areas that are in need of revitalisation.
Furthermore, they can help foster a sense of community and provide residents with pride and ownership. Finally, social housing projects can serve as a catalyst for other regeneration initiatives, such as the development of new schools or parks. In short, there are many good reasons to invest in social housing projects. Done right, they can bring about real and lasting change for communities.
And because the government subsidises the rent, these sorts of investments can provide an attractive return for investors while benefiting society.
Tick Box Conveyancing will be closely watching the progress of the National Housing Accord and we look forward to seeing more details about how it will be implemented in the coming months. In the meantime, if you have any questions about buying or selling property, please don’t hesitate to get in touch with our team of experts.
We’re always happy to help!
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