ALP’s affordable housing policy will assist Institutional Capital into the residential development sector

The Urban Taskforce welcomes the announcement by the Australian Labor Party to offer subsidies of $8,500 per annum to investors building new homes in return for cheaper rent for eligible tenants.

The subsidy is part of the ALP’s national housing affordability plan, which aims to provide 250,000 affordable rental homes for low to middle income earners over the next 10 years, similar to the Urban Taskforce’s affordable housing policy, How to create 40,000 affordable rental homes in 10 years.

‘The Urban Taskforce welcomes the proactive and positive approach Labor has taken to addressing Australia’s ongoing housing affordability crisis,’ says Urban Taskforce CEO Chris Johnson. ‘

‘Creating a program to incentivise investment in the delivery affordable housing will make a critical contribution to meeting the ongoing demand for housing, and encourage long-term sustainable investment in the residential development industry which provides thousands of jobs and is the backbone of Australia’s economy.’

‘Housing affordability is a hugely complex issue, any many different approaches are needed to effectively tackle this problem. State and territory governments still have a responsibility to ensure that enough appropriately-zoned land is available in inner-ring suburbs to ensure sufficient housing supply. Infrastructure levies must be kept under control to ensure that these to not add to the cost of housing production.’

‘Labor has shown initiative and taken the plunge to commit to funding the incentives needed to get more affordable homes on the ground. We look forward to working with Labor if they are elected on developing and implementing their policies.’

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