NT experts call for housing reform as National Cabinet meets
Chief Minister Natasha Fyles is in Brisbane for Wednesday’s National Cabinet meeting, where housing and renting are the key agenda items. Read what our housing experts would do.
Northern Territory
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Rent and housing are top of the agenda at today’s National Cabinet meeting in Brisbane.
Growing calls for more rental, worker and student housing are competing with appeals for increased Defence housing to reflect the Territory’s current strategic importance.
This masthead has canvassed Northern Territory housing experts to determine what they believe can be done to improve housing availability.
Luis Espinoza
Housing Industry Association NT - Executive Director
Darwin has continued in a steady pace since the pandemic and builders still have some stock to complete in the pipeline by the end of the year, or earlier.
This means there is not much in sight for the next one or two years. This will in turn impact cost of housing, rentals and employment for builders and contractors.
The NT government is set on reaching a $40bn economy by 2030, but this will not be possible with the current population. The NT’s population must grow to deal with the proposed major infrastructure and projects and this will require housing for families.
We cannot promote or invite people to move to the NT if there is nowhere to live, it’s that simple.
The release of new land in Holtze might be too late by the time it’s ready to build on.
Current land availability has been sold and there needs to be a serious review as to how long before more land comes into the market. This will bring costs down for sales and rentals.
The only way to get on the front foot of this economy in the NT is by government committing to making the Territory an inviting and safe place for families to come and stay.
Taxes, levies and red tape need to be reviewed to make housing affordable.
Michael Byrne
NT Shelter - Regional Co-ordinator
Young people under the age of 25 represent almost 50 per cent of people experiencing homelessness in the Northern Territory. The private rental market is out of reach for many young Territorians.
The Northern Territory government’s housing strategy identifies an estimated shortage of 8000 to 12,000 social and affordable dwellings across the NT by 2025.
As a result the Northern Territory has 12 times the national average rate of homelessness but receives 1.3 per cent of national funding for specialist homeless services.
The Residential Tenancies Act has a critical role to play in safeguarding the housing needs of the Northern Territory’s residents, ensuring that tenants are not evicted unnecessarily into homelessness, and providing pathways for people out of homelessness into accommodation.
It provides governance over the suitability of dwellings for habitation, security of tenure and safety and control of the living space.
We’re advocating alongside 11 organisations to make renting in the Northern Territory fair, safe and certain.
Ruth Palmer
Property Council NT - executive director
In recent data, Darwin’s median weekly rents have risen dramatically, with an 11.7 per cent annual increase for houses and a 12.6 per cent spike for units. Additionally, dwelling approvals have dropped by 2.4 per cent.
The demand for housing is rapidly outstripping supply, and if this continues, the NT will require an extra 12,500 homes by 2041, excluding the existing need for remote community housing.
Unprecedented factors such as increasing construction costs, skilled worker shortages, and consumer hesitancy to buy have limited the ability to address this demand. This has put immense pressure on the housing market, risking demand-driven price spikes, particularly affecting those in lower socio-economic brackets.
To combat this, the Property Council suggests extending Stamp Duty Concessions and equalising the tax treatment by providing a 100 per cent stamp duty concession for off-the-plan apartments up to $800,000.
We should improve HomeBuild Access to increase the purchase price cap to $750,000 and introduce a $15,000 ‘rightsizing grant’ to seniors looking to downsize, freeing up larger family homes.
Ben Carter
Master Builders NT - chief executive
Housing supply must be seen as more than a social issue. It is a strategic one for our economy and our national defence.
In the Territory there is a chronic shortage of housing in key Defence centres such as Katherine.
This issue must be addressed or it will act as handbrake on investment in the Territory in the defence space and other industries.
There has to be sufficient social housing and affordable housing but also an adequate supply of entry level housing so that young people, families and migrants can get a step up into home ownership with all the benefits that brings.
In the Territory, remote housing is important but this shouldn’t be at the expense of the major population centres.
Substantially increasing the supply of shovel-ready land and cutting red tape that holds up building approvals are just two of the necessary reforms that have never been successfully delivered by any political party while in government.
Tackling the often hidden taxes such as high developer charges is going to be important if we are going to get the cost of land down so that there can be more shovel ready land available for housing.
Dr Stephanie Kelly
Northern Territory Council of Social Security - chief executive
We have a housing crisis in the NT and the highest number of renters, almost half the population.
This is due to numerous factors including a shortfall of up to 12,000 houses - see the NTG Housing Strategy 2020-25 page 11 - a significant number given our population, historically low rental vacancy rates and the worst rental protections in the country.
It is unacceptable and unreasonable that with no-grounds evictions, you can be evicted with no reason with as little as 14 days notice (NT Residential Tenancies Act) or have your rent significantly increased by the landlord.
What does that housing stress do to a family that has to pay a minimum of 30 per cent of income on rent?
Some suggested reforms to the NT Residential Tenancies Act include establishing rules around reasonable rent increases; the need to expand the Rent Choice rental subsidy scheme to ensure affordable housing.
Other suggestions would be to release more land for housing and provide incentives to ensure 20 per cent of new supply is for social and affordable housing.
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