Supply of Rental Homes Increases in the Illawarra. Still less than 1% affordable for people on low incomes.
New research launched today by Anglicare reveals that while there were more listings of rental properties compared to last year, there were still less than 1% affordable for people on low incomes in the Illawarra.
Anglicare Sydney’s Rental Affordability Snapshot analysed 1,051 properties that were available in the Illawarra and Shoalhaven/Southern Highlands on the weekend of 24 -25 March 2018.
Of the 1,051 properties advertised, only 16 were affordable and appropriate for households on Government income support payments without placing them in rental stress. Of the 16 suitable properties in the region, most were in the Shoalhaven or the Southern Highlands (11). Only five suitable rental properties were in or close to Wollongong.
“Rental stress occurs when more than 30% of a low-income household’s income is spent on rent,” explains Susan King, Head of Research and Advocacy at Anglicare.
“Once again, our Rental Affordability Snapshot highlights the shortage of affordable private rental accommodation in Greater Sydney and the Illawarra region. Households that rely only on income support payments are still finding it difficult to compete for a very small pool of affordable private rental properties.”
No rental properties in Sydney and the Illawarra were affordable and appropriate for single people on Newstart or Youth Allowance.
Couples who were both receiving the Aged Pension had the most number of homes that were suitable and affordable for them (13 properties).
Only small numbers of suitable properties were found for couples with children where both partners receive the Newstart Allowance (4 properties). There were no suitable properties for single parents on the Parenting Payment or Newstart Allowance.
“The lack of housing affordability in both the rental and home ownership markets is adversely impacting renters, buyers and mortgagees. There is no one simple solution to this problem. Australia needs to see changes across the housing spectrum, including an increase in the supply of social housing to ease pressure in the rental market.
“Federal and State Governments also need to review the effect of their respective taxes, duties and concessions on housing rental and ownership affordability. The taxation system needs to be modified accordingly to improve affordability.
“Finally, we urge our State Government to review the residential tenancy law and modify it to ensure greater security for private renters and tighter regulation on rental increases, including the prohibition of ‘no cause’ evictions.”
Anglicare Sydney’s Rental Affordability Snapshot is part of a national project carried out by Anglicare Australia to assess national rental affordability for low income households.
Susan King, Head of Research and Advocacy, Anglicare, is available for interview.
Visit www.anglicare.asn.au for the national snapshot.