Housing affordability
Evan MULHOLLAND (Northern Metropolitan) (12:36): (335) My question is for the Minister for Housing. According to SQM Research, rents in Melbourne have increased to $597 per week in October from $507 per week a year ago. The rent for Homes Victoria affordable rental homes in Melbourne is set at 10 per cent below the market rate. Given the market rate has increased by around 17.8 per cent in the past year, can the minister advise how much the average asking rent for available Homes Victoria affordable homes has increased in that period?
Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (12:37): Thanks, Mr Mulholland, for that question. I think when I first got to my feet on the very first housing question that I was asked I broke down the way in which housing sits across multiple portfolios. When we are talking about social housing, which includes public housing and community housing, and the way in which the formulas are determined – 20 per cent of an income for public housing and between 25 and 30 per cent for community housing, which includes access to the Commonwealth rental assistance scheme payment, and then also there are different treatments on GST and the addition of wraparound services and care – that is a point of distinction with affordable housing. As you would appreciate, there are different categories of affordable housing. There is very low, low and moderate housing within those quantums that are set and established by the Planning and Environment Act 1987.
One of the things that I do want to point out – and I am very happy to get some further information for you on this – is when we move into the affordable housing space and we look at how that sits alongside the work that is happening in social housing, which includes and incorporates public and community housing, that is actually something which sits with Minister Brooks. Because the housing statement itself contemplates a range of different ministerial portfolios, I am really happy to get you that detail. Again, if you wanted to come back to a question that relates to social housing, I am very happy to answer that, but they are the formulas that apply in determining the way in which calculations are made, including as they relate to the formula for affordable housing within that private scheme.
Evan MULHOLLAND (Northern Metropolitan) (12:39): It seems like a bit of a dog’s breakfast with about five different ministers responsible for housing. The former Premier said of the housing statement that the status quo is not an option. According to SQM Research, when Labor was first elected in 2014 Melbourne had 12,713 homes available to rent. Despite our state losing population during the pandemic and a flood of government press releases about home building, there are now only 6449 homes available to rent – all this as our state is set to grow to 10 million by 2050. Have government policy settings driven this status quo since 2014?
Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (12:40): I find the way in which that supplementary has been couched to be somewhat confusing, but again I will try to give you some information that will assist you, noting that when we went into, I think, the election in the last government there was a promise by your colleagues to deliver 500,000 lots across the state, which would have led to all sorts of sprawl in a term not contemplated by providing connections and livability. But in any event, when we talk about rents, the scheme that has been –
Members interjecting.
Harriet SHING: I do not wish to stray into outdoor recreation and fishing, which was then an exercise that just proved rather successful. The scheme will provide renters, through the setting of rent at 10 per cent below market rate, with security through those fixed-term rental agreements for up to three years, and there will be a capacity to extend at the end of that year. The rent for a one-bedroom home in metro Melbourne will not be more than $344 per week, if that provides you with assistance. I am happy to get some further detail if you would like.