Mortgage, rental stress hits voters in Labor marginal seats

MORTGAGE and rental stress has hit voters in a string of Labor-held marginal seats and could have a significant impact on next year’s state election, the welfare sector warns.

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MORTGAGE and rental stress has hit voters in a string of Labor-held marginal seats and could have a significant impact on next year’s state election, the welfare sector warns.

South Australian Council of Social Service CEO Ross Womersley said Labor MPs hold 17 of the top 20 seats affected by housing stress, so the State Government could not afford to ignore the problem.

The issue is affecting not only those who cannot afford to pay their rent but also families struggling with mortgage payments. In total 107,000 South Australian households are living with housing stress, 60 per cent of those renters.

Labor holds eight of the 10 state seats most affected by mortgage stress: Taylor, Playford, Port Adelaide, Ramsay, Reynell, Kaurna, King and Torrens. Only two of the top-10 seats are held by the Liberals: Heyson and King.

“At one level, housing stress can be seen as a problem mainly for Labor,” Mr Womersley said.

“They hold 17 of the 20 seats with the highest rates of housing stress, and one of the three Liberal-held electorates in this 20 is Adelaide, which is arguably a special case.

Mortgage and rental stress is particularly hitting battlers, striking in marginal seats held by Labor. File pic

“Three of the five most marginal seats currently held by the government — Mitchell, Elder and Ashford — and six of the 10 most marginal seats overall have housing stress rates above the state average.

“Accordingly, housing stress is a greater issue in some of the key seats the Liberal Party will need to win or Labor will need to retain to form government.”

The figures are included in SACOSS’s Cost of Living Update, which will be released today to coincide with Homelessness Week. Housing stress is defined as when households spend more than 30 per cent of income on rent or mortgage.

Mr Womersley said SACOSS wanted clear housing policies from the major parties well before the election, and for each to adopt four suggestions:

A VACANT property tax to provide a financial disincentive to leaving housing vacant.

OPENING concessional finances for community housing providers with a loan scheme.

TIGHTENING and enforcing requirements for affordable housing in new developments.

TRANSFERRING titles (not just management) of a proportion of public housing to the community housing sector to enable NGOs to leverage further development.

Mr Womersley said the State Government could not pass off the problem as one for the Federal Government and the Reserve Bank.

“State governments provide important support services for those struggling with housing costs, provide the legislative framework for new housing development and provide low-income housing directly through Housing SA or through community housing organisations,” he said.