Queensland heads off crisis talks with doubling of social housing spend

An extra 5600 social and affordable homes will be built by the Queensland government over the next five years in a previously floated move made to preempt crisis talks. But the number is still short of what the sector says it needs.

The state government will pour an additional $1 billion into its housing fund, doubling its size and the number of homes built from its investment returns by 2027.

Premier Annastacia Palaszczuk told the housing summit the state had been hit by “housing’s perfect storm”.Credit: Matt Dennien/Nine

But ahead of Thursday’s summit to hash out short- and long-term solutions to the state’s housing crunch, social service and housing groups urged the government to lift its commitment to 5000 homes each year.

Record-high rental shortages, interstate migration, high property prices, climbing inflation, and an audit office report that excoriated the government’s handling of social housing have driven the government into recent action.

Premier Annastacia Palaszczuk told the gathering of more than 200 people from across the political, government, social service and property sectors that the state had been hit by “housing’s perfect storm”.

“Doubling the size of that fund means we now have $130 million each year to create new housing stock where it is needed most,” Palaszczuk said. This would also help cover increased building costs putting pressure on construction.

Protesters outside the Queensland housing summit call for a boost to tenants’ rights and an end to “predatory” rent increases. Credit: Matt Dennien

Palaszczuk also pointed to measures already announced after the 40-person housing roundtable last month – opening up the ability to rent out granny flats, and a review of how Airbnb-style rentals may be playing a role.

In a nod to one West End-based real estate agency that recently told landlords to raise rents by more than 20 per cent, Palaszczuk said such behaviour was “not on”.

“That’s not the kind of behaviour we should see or accept in a modern Queensland and modern Australia as families are struggling,” she said.

Her comments came as protesters outside Thursday’s summit added to calls for greater tenant rights and an end to “predatory” rent rises.

The state’s housing fund top-up, from increased tax revenue, will take the pool of money to $2 billion. Annual investment returns are then put into supporting new social and affordable housing projects.

Queensland Council of Social Service chief executive Aimee McVeigh welcomed the announcement of extra funding but said more was needed from the summit to help people experiencing homelessness now.

Federal Housing Minister Julie Collins, who also addressed the summit and whose government will deliver its first budget next week, confirmed that housing would be on the agenda of the upcoming national cabinet meeting.

The Albanese government made an election commitment to establish a $10 billion housing investment fund of its own to see 30,000 new social and affordable homes built nationwide in five years.

On Wednesday, Queensland Housing Minister Leeanne Enoch spruiked the milestone passed by her Labor government of 4000 social and affordable homes constructed since it came to office in 2015.

But a report by the Queensland Audit Office in July found the then construction pipeline of 6365 new social housing dwellings by 2025 would not meet demand.

Federal government support for some 8000 affordable rental properties are also planned to wind back by 2026, a scheme Enoch has called on the Commonwealth to reinstate or replace.

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