New plan will help dampen spiralling Sydney rents

13 August 2007

Kevin Rudds plan for a National Rental Affordability Scheme will help dampen Sydneys spiralling rents according to Aaron Gadiel, CEO of the NSW Urban Taskforce.

Research organisation BIS Shrapnels latest report Building in Australia 2007 to 2022 predicts that the construction of new homes in NSW will fall short of whats needed for the next three years. In the next year alone there will be a national shortfall of 22,000 homes.


If no urgent action is taken renters will face dramatic rental increases for the foreseeable future, Mr Gadiel said.


Labor Leader Kevin Rudd has announced a plan to help create 50,000 new affordable rental properties across Australia. The proposed National Rental Affordability Scheme, costing $603 million over its first five years, would use tax incentives and financial support to provide rental housing to low and middle income families at 20 per cent below market rents.


The property development industry welcomes this sensible policy commitment, Mr Gadiel said.


This is the kind of proposal that will help kick-start investment in Sydney residential housing.


It will help tackle the rental crisis in Sydneys established inner and middle ring suburbs.


According to the NSW Department of Housings most recent Rent and Sales Report annual increases in median rent for one bedroom units are as high as 26 per cent in Hurstville, 18 per cent in Parramatta and 17 per cent in North Sydney. Rents for two bedroom units in Leichhardt increased by 24 per cent and in Auburn they increased by 15 per cent. In 14 local government areas there were rental increases of 10 per cent or more.


This proposal will help some of the 450,000 Sydney households who rent.


The NSW Urban Taskforce called upon both the Labor and Liberal parties to implement this kind of scheme on 26 July 2007.


We will continue to encourage the Federal Government to introduce its own plan to attract private investment in rental housing.


The NSW Urban Taskforce is a property development industry group, representing NSWs most prominent and important developers, builders and property financiers. The NSW development industrys annual turnover is $35 billion and employs 180,000 people, accounting for six percent of the States total employment. It is the fifth largest contributor to the State economy.

Media Enquires:
Aaron Gadiel,
Chief Executive Officer,
Phone: 0417 477 904 or (02) 9238 3955

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