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Date Published : Friday, July 25, 2008
A new government scheme designed to increase the supply of affordable rental properties has been described as a "positive step" in the right direction by campaign groups - but it has also brought a warning there is no "silver bullet" solution to Australia's housing problems.
The National Rental Affordability Scheme was officially launched this week by Treasury secretary Wayne Swan and housing minister Tanya Plibersek, the Herald Sun reports.
Under the initiative, developers will be offered a package of incentives worth $623 million over the next four years to drive down the cost of renting a home for people on low-incomes who have seen their salaries outstripped by galloping property prices.
According to research by AMP and the National Centre for Social and Economic Modelling, wages increased by an average of 31 per cent between 2001 and 2006 - but over the same period, house prices grew by over 60 per cent.
Under the new scheme, those on low incomes will be able to rent properties at 20 per cent below their market value, the publication said.
In total, the plan aims to create at least 50,000 new affordable rentals by 2012, although this could be boosted to 100,000 if enough developers come on board.
Prime minister Kevin Rudd said the plan represents "practical action" to deal with rental affordability, which is "hurting working households right across the country".
Reaction to the scheme has been largely supportinve, with Gregor Macfie of welfare lobby group Acoss describing it as "positive" and "welcomed", although he added it is not the "whole solution" to the affordability crisis.
A recent survey from Australian Property Monitors found that rents have increased by an average of 25 per cent over the last year - with Perth (25 per cent) and Sydney (11 per cent) experiencing the biggest individual increases.
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