Housing crisis: Tasmanian government to start renting homes on the private market

The state government is wading into the private rental market, while the Greens have their sights set on Airbnb. The latest on Tasmania’s housing crisis >>

Greens member for Franklin with Greens leader Cassy O'Connor. Question time in the Tasmanian parliament. Picture: Nikki Davis-Jones

The state government will start renting properties on the private market in a further bid to address the ballooning public housing waiting list.

Thursday’s state budget will include $1.5m for the trial affordable rentals initiative.

Housing Minister Guy Barnett said the trial would allow Homes Tasmania to source private rentals at market rates and provide them to eligible low-income Tasmanians at a reduced rent.

“Housing is a top priority, building more homes faster is a top priority for our government. But also dealing with the here and now. In affordable housing it’s been tough...We need to be innovative. We need to be flexible when it comes to providing more affordable housing to Tasmanians as well as building more homes faster,” Mr Barnett said.

Housing Minister Guy Barnett, Centacare Evolve Housing general manager housing options James Norman, private rental incentives program participant landlord Erminia Sorella, Liberal Bass MP Simon Wood and Centacare Evolve Housing senior tenancy officer Lynette Genders.

“Of course the ultimate solution, the important solution, is supply, supply, supply. We are on track to build 1500 homes by 30 June this year. Obviously a $1.5bn commitment to support homes Tasmania to build those 10,000 homes by 2032.”

According to the latest government figures, there are 4603 applications on Tasmania’s public housing waiting list.

The average time to house priority applications has blown out to over 80 weeks, up from 64 weeks a year ago.

Mr Barnett also highlighted the established private rental incentive scheme, which pays landlords between $6600 and $9900 a year to rent their property to a person in need of affordable housing.

The properties are managed by Centacare Evolve Housing and tenants are provided with two year leases.

“The PRI commenced in 2018, it has already supported 514 eligible families to access a private rental home at an affordable rent,” Mr Barnett said.

Landlord Erminia Sorella, who has three properties rented affordably through the scheme, encouraged property owners to consider joining.

“We’re doing something good for the community while at the same time we are able to keep our property on track, so being able to afford to be able to maintain it and take care of it,” she said.

Picture: nkbimages / iStock

Franklin MP David O’Byrne said the private rental incentives scheme was helping only a small fraction of people in need of housing.

“There are around 60,000 rented properties across Tasmania. But in the last 12 months, the government have only managed to incorporate 111 extra rentals under the scheme,” Mr O’Byrne said.

“Even in the last three months, as cost of living pressures soared, only 22 extra properties received private rental assistance.”

In state parliament on Wednesday the Greens moved to give council more discretion to refuse short stay permits for whole homes.