Tenants Union of Tasmania says levy needed to fill 100’s of empty homes across the state
Recently released data uncovers how many homes are sitting empty across Tasmania as the cost of rentals continues to climb year on year. Solution pitched to fill empty houses.
Tasmania
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The Tenants Union of Tasmania says while the average renter is paying $7000 more a year than five years ago nearly 1000 homes sit empty.
The union has released data provided by TasWater which found that last year there were 916 empty homes in Tasmania including 291 in Hobart, 445 in Launceston and 180 in Glenorchy.
Union principal solicitor Ben Bartl wants all political parties to ensure empty houses can be used and says an empty home levy would encourage investors to return vacant homes to the long-term rental market.
“Homes are sitting empty and we need to do more than just promote policies to build new homes which take years and don’t necessarily increase supply for renters,” he said.
“Homes sitting empty in an affordable housing crisis is a travesty with academic studies having found that an extra 65 properties available for rent in Hobart and 36 in Glenorchy would raise the vacancy rate by one per cent resulting in downward pressure on rents.
“An empty homes levy similar to that adopted in Melbourne or Vancouver would be a good way of encouraging investors to return their empty investment properties to the long-term rental market.
“In Vancouver for example, an empty homes levy has seen the number of empty homes drop by 36 per cent and more than $115m raised for social housing.”
In Victoria, a vacant residential land tax is applied to any residential premises located in 16 inner-city and middle-ring council areas left empty for at least six months. Empty homes are charged one per cent of their value.”
Mr Bartl said Hobart’s vacancy rate was currently one per cent.
“In its Tasmanian Housing Strategy released several months ago, the State Government acknowledged that a vacancy rate of three per cent would ‘help to stabilise rents and ultimately reduce pressure on household budgets’,” he said.
“The median Tasmanian rental household was paying $311 per week five years ago and today they are paying $445 per week which is a $134 per week increase.”
Mr Bartl said the data provided by TasWater also highlighted that over the last six years there have been 629 homes left empty for three or more consecutive years – 209 in the Hobart municipality, 312 in Launceston and 108 at Glenorchy.
Originally published as Tenants Union of Tasmania says levy needed to fill 100’s of empty homes across the state
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