Hundreds of South Australians at risk of homelessness as National Rental Affordability Scheme winds up

Already struggling with a rental crisis, Adelaide is about to have “thousands” without a home. Here’s why.

Hundreds of South Australians are at risk of becoming homeless this year as an average of 10 properties a week come off the National Rental Affordability Scheme at a time when the continuing rental crisis is squeezing even moderate income earners out of the market.

Social services groups fear low-income families and individuals will be left without a roof over their heads, or will be forced to crash on couches, as the rental subsidy program progressively comes to an end.

More than 3100 homes across SA will come off the NRAS scheme – which offers rentals to low-income earners at a rate of at least 20 per cent below the market price – over the next five years after the federal government in 2014 decided to wind up the program.

More than 500 homes will drop out of the scheme this year, followed by another 500 next year, and 1000 the year after. In 2025, 240 homes will end their involvement with the NRAS while the final two homes will finish up in 2026.

Adelaide has the most NRAS homes (315), followed by Munno Para West (196), Andrews Farm (177), Murray Bridge (111) and Mount Barker (103).

More than 300 homes have come off the scheme, which is delivered by the federal government in partnership with state and territory governments, in the past two years.

South Australian Council of Social Services chief executive officer Ross Womersley said the end of the program had already had devastating consequences for some South Australians.

“We already know of people who have been in NRAS properties and have come to end of their term and the landlords have massively hiked up the rent and as a consequence they haven’t been able to afford to continue to maintain their tenancy,” he said.

“And in some instances they’ve have found themselves homeless.”

Mr Womersley said as each of the 3100 properties comes off the NRAS program over the coming years, if landlords increase their rent to market value “we’ll have thousands of people who suddenly don’t have anywhere to live”.

“We know we’ve got this crisis where even people on moderate incomes are finding it difficult to find properties, and that means people on low incomes are missing out all together,” he said.

Mr Womersley said both the federal and state government needed to build “thousands and thousands” of public houses, or increase rent assistance payments, to avoid disaster.

Shelter SA executive director Alice Clark agreed more public housing, as well as a state government subsidy “even as an interim arrangement” was needed.

“We have heard a couple of stories about rents pushing people out of their ability to pay and they’ve had to leave those properties so the timing of the subsidies ending is not great when we’ve got such a low vacancy rate in the private rental market,” she said.

Opposition human services spokeswoman Nat Cook said the end of the scheme would “seriously impact low income families who may be left homeless because they simply can’t afford increasing rental prices”.

Human Services Minister Michelle Lensink said the state government’s $550 million housing strategy was “helping more South Australians into homeownership, preventing people falling into homelessness and ensuring public housing is available for our most vulnerable”.

Federal Housing Minister Michael Sukkar said NRAS was not being extended because an independent review found it was “rorted by some participants at the expense of mum-and-dad investors and the community housing sector”.

“Australian taxpayers forked out $3.5 billion to deliver just 35,000 properties, of which about 5,000 are specialist student accommodation, that do nothing to offer low-income families affordable housing,” he said.

House Trust tenants attack botched repairs

- Kathryn Bermingham

Housing SA tenants temporarily relocated while their faulty ceilings were replaced say the work was botched and unfinished, their homes left open and unattended, and items were stolen during the process.

Residents of 100 properties have been told to vacate their home for replacement work.

Incorrect products and fixing methods were used when the homes were constructed between 2002 and 2009.

So far 25 properties have had their ceilings replaced, with the program expected to be complete by June next year.

Bec, whose Hectorville property was one of those affected, said a lemon tree was stolen during her family’s three-week relocation.

She said the property was also left open for extended periods while no one was present, and switches for lights now trigger ceiling fans.

The family was allowed to move back into their home when plaster had not been sanded back, the repaired areas had not been painted, and the home was coated with dust and grime.

“It took hours for me to get it back to what it was,” she said.

Opposition spokeswoman for human services Nat Cook, pictured, called for the situation to be urgently addressed.

“These people have been left in an awful state … I do not think it is up to standard, I do not think it is right”.

Following a question in parliament, Human Services Minister Michelle Lensink said the circumstance was unsatisfactory.

“In the first instance, of course, any situation as (has been) described on the face of it, we would be very concerned about,” she said.

A spokeswoman for the SA Housing Authority said the organisation was looking into the allegations relating to Bec’s home.

“It is unclear how the (lemon tree) pot was removed,” she said.

“The issue with the light and fan is being investigated.”