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Affordable housing cuts must be reversed PDF Print
28 January 2011
Today's release of the Productivity Commission's 2011 Report on Government Services highlights the pressing need to expand the provision of affordable rental housing for low income households in NSW.

The Report shows that 45.7% of NSW low income households are in rental stress, meaning that they pay more than 30% of their income in rent. The NSW rate of rental stress is the highest of any state or territory.

Given this, NCOSS is dismayed at yesterday's Commonwealth Government decision to cut the planned future growth of affordable rental housing under the National Rental Affordability Scheme (NRAS).

While NCOSS supports the introduction of a temporary flood disaster levy and expenditure cuts in poorly targeted programs to assist with the reconstruction effort, providing affordable rental accommodation is not one of those areas.

"Nothing has happened to reduce the demand for affordable rental housing," according to NCOSS Director, Alison Peters.

"With the roll out of the Stimulus Package new social housing in NSW approaching completion, NRAS is one of the few options available to create new housing for low income household."

"NRAS is a very cost effective program, because it combines Commonwealth, state and private sector funding."

"For the sake of Commonwealth funding of $264 million over five years we face the loss of thousands of promised houses. This is poor economics and poor policy.”

Media Contact: Alison Peters, Director 0425 231 814 (mob) (02) 9211 2599 (wk)