Hobart tenants facing huge rent hikes due to impending end of National Rental Affordability Scheme

The coronavirus crisis is causing extra distress for the tenants of an affordable housing complex in Hobart who have found themselves in a state of limbo.

THE coronavirus crisis is causing extra distress for tenants of an affordable housing complex in Hobart who have found themselves in a state of limbo.

The 45 residents of the 20-unit complex in Warwick St are facing huge rent hikes because the National Rental Affordability Scheme is about to end.

The scheme, which provides state and federal subsidies to keep rents 20 per cent below the market rate, was only intended to last 10 years and will cease for the Warwick St property this month.

Tenant body representative Natasha Smyth said everyone living there was aware the scheme is due to expire and all were worried about the rental housing shortage in Hobart.

“Now the COVID-19 national emergency has emerged it has become unbearably distressing for tenants as they are forced to contend with government restrictions, for example self-isolating and even viewing potential accommodation,” Ms Smyth said. “Compound this with reduced incomes and job losses, the situation has become dire for these tenants.

“We are grateful for the efforts of the landlord, who is acting in a compassionate way to help. Now we need the Government to do the right thing and extend the NRAS scheme for this group.”

Long-term tenant Chris, who did not want his surname used, has been living at the complex for six years and been told his weekly rent will rise from $310 to $450 if the scheme is not extended.

Mike Chater, a full-time student, said he was wondering how he will cope with a $120 jump in his rent. The pair do not want to move and have few options in Hobart’s tight and expensive private market.

Landlord Jim Tsiakis said he had been desperately seeking a solution for his tenants, who would find it impossible to pay higher rents but were incapable of finding a new home amid coronavirus restrictions.

“Some people voluntarily wanted to leave because they can’t pay the new rent, but they have been ringing me saying they can’t get out. They can’t even get out to inspect a new rental,” Mr Tsiakis said.

“Just two tenants out of the 20 apartments are leaving and the rest are stuck.”

Mr Tsiakis said the State Government had offered to transfer the apartments to a state-based rental subsidy scheme, which would help tenants on the waiting list for affordable housing, but not necessarily those currently residing in Warwick St.

“That subsidy would apply to the unit itself, not the person, and my concern is for the actual humans in this situation,” Mr Tsiakis said.

Independent member for Clark Andrew Wilkie has written to Federal Housing Minister Michael Sukkar urging him to extend the NRAS for a year.

“This is the worst point in time for the NRAS to end and the most sensible remedy is for the Federal Government to extend it,” Mr Wilkie said.