The increasing cost of buying a house combined with a desire to delay or avoid the burden of housing debt, and the simultaneous growth of a dynamic, casualised workforce is creating a generation of longer-term tenants. At the same time that a significant number of households are renting for longer terms, private rental is becoming less affordable, particularly for low-income households. 4 Additional challenges facing tenants include less control, stability and security, compared to more secure forms of tenure offered by home ownership or social housing. Social housing targets the most vulnerable and disadvantaged to provide safe, secure and affordable housing. It plays an important role in influencing trends in the private rental market. Greater targeting of social housing means more people in low-income households are competing in the private rental market. The private rental market needs to be able to provide housing to low- income households, to relieve demand for social housing and to ensure that social housing is available to those most disadvantaged and in need. 2 ‘Reform of the Federation White Paper: Roles and Responsibilities in Housing and Homelessness’, Issues Paper 2, December 2014, Australian Government, Department of Prime Minister and Cabinet, page 1. 3 Ibid, page 28. 4 ‘2015 Rental Affordability Snapshot’, Anglicare Australia, page 18. Page 9 of 41
Laying the Groundwork - Consultation Paper Residential Tenancies Act Review – Fairer Safer Housing The disadvantages of private rental can be particularly significant for families and vulnerable and disadvantaged groups, such as the elderly, those on low incomes, and people with a disability. Demographic and other changes also mean that there will be a growing number of vulnerable and disadvantaged groups with complex needs renting privately who may require specialised attention. For example, commencement of the National Disability Insurance Scheme (NDIS) is likely to lead to an increase in people with a disability seeking private rental accommodation, with possible implications for security of tenure, and the ability to make modifications to properties to improve accessibility. The growth in older tenants may have a similar effect on the demands and requirements of the private rental market and its regulation. Delivering safe, affordable and secure housing All Victorians have a right to safe, affordable and secure housing. A home is the foundation of financial, social and emotional security. More broadly, housing plays a critical role in the economy through its impact on workforce productivity and participation. The Victorian Government recognises that there are a range of factors impacting on Victorians’ housing choices. This includes a growing and ageing population, changes in where people live and who they live with, and declining levels of housing affordability.
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- Summer '14
- Government, Leasehold estate, Rental agreement