Government urged to ‘head lease’ empty private properties, then sub-let to renters

The state government is being urged to lease tens of thousands of empty private properties – because focusing on new homes will take too long.

The state government has been urged to lease vacant rental properties then sub-let them to people in need of a home, under a proposal to tackle the state’s housing crisis.

At the time of the 2021 census, there were more than 80,000 privately-owned units, apartments and houses unoccupied across the state.

Shelter SA executive director Dr Alice Clark said the government should focus on using those properties as a “quick-fix solution” to the current crisis.

“We should be looking at the state government head leasing some rental properties that might be vacant at the moment,” she said.

Dr Clark said “head leasing” was where the government took the responsibility for the lease and the rent and then could sub-let the property.

Shelter SA has already called for an audit on vacant properties, and suggested councils could identify homes and engage with owners.

Dr Clark said head leasing should be seriously considered because it would offer immediate housing – as opposed to plans to build more public housing, which will take years.

AnglicareSA case manager Ally supporting Kylie who has been in a hotel since March with her daughters after a relationship breakdown left them homeless. Picture: Morgan Sette

The tenant would pay rent to the government, which, if subsidised, would be less than the amount paid by the government to the landlord. Head leasing schemes operate in other states, including Queensland and NSW.

A spokeswoman for Human Services Minister Nat Cook said the South Australian Housing Authority (SAHA) had previously engaged in head leasing – both leasing homes off the private market in situations where the Trust didn’t own a suitable home for the people in need, and leasing public housing to other organisations.

Human services minister Nat Cook. Picture: NCA NewsWire / Morgan Sette

“The authority continues to lease more than 1600 homes to other organisations to help particular groups, including people with disability, those exiting homelessness and people escaping family violence,” she said.

“SAHA’s community partners have recently commenced head leasing private homes, and are seeking to lease more. A key constraint is the number of available homes in suitable locations.”

The spokeswoman said supply of new homes was also important, and $177.5m would be invested in new and upgraded housing over the next four years to make hundreds of extra homes available.

“In a tight market, it’s also important to remember that any home leased by the government to help one person or family then can’t be rented by another,” she said.

SAHA was also working with owners of vacant buildings “that may provide suitable accommodation to help people in need”, the spokeswoman said.

Mum Kylie has been living in motel crisis accommodation with her two daughters since March, after couch surfing with family since July 2021 following a relationship breakdown.

She says housing in SA must be more accessible and affordable for those on lower incomes. Kylie estimates she has applied for more than 260 rentals in those four months despite a good rental history.

Kylie said her daughters had witnessed people sleeping rough and were grateful to be provided the emergency accommodation. Her other two children are staying with family.

“We don’t spend cold nights on the streets but are definitely wanting to be in a house so they can have their brother and sister sleep over as well as other family and friends,” Kylie said. “I can’t wait to be able to cook good, nutritious food for the kids, and have some space for them to run and play and be kids.”

AnglicareSA is currently supporting 59 adults and 113 children in emergency accommodation in hotels/motels across Adelaide, including Kylie and her kids.