The federal government has announced that 2,300 properties will be built in Western Australia under the fourth round of the National Rental Affordability Scheme (NRAS).
Deputy Prime Minister and Treasurer Wayne Swan and Sustainability Minister Tony Burke announced NRAS round four, which will deliver over 200 projects to build more than 17,000 properties nationally for low to moderate income households to rent below market rate.
In WA, more than 2,300 properties will be constructed taking the number of properties supported under the program to 5,000.
“Paying the rent is a major cost of living pressure for those on low incomes and this program is an important way to free up the rental market and put downward pressure on rents,’’ Mr Swan said in a statement.
The National Rental Affordability Scheme is designed to increase the supply of new affordable rental housing, reducing rental costs for low and moderate income households and encouraging investment and innovative affordable housing.
Mr Swan said the scheme also provided a boost to the domestic construction industry.
All of the properties are newly constructed under the NRAS program – either recently completed and never previously occupied, or a new construction to be completed.
The scheme is being delivered in partnership with state and territory governments and works by providing annual financial incentive payments to the business sector and community organisations to construct and rent new dwellings to eligible low and moderate income households at a rate that is at least 20 per cent below the prevailing market rates over 10 years.
“Before Labor came to office there were no programs aimed at improving the availability of affordable rental properties,” Mr Burke said.
“The National Rental Affordability scheme is about addressing the shortfall of affordable rental properties across Australia and helping families afford to rent a home."
The federal government said it has committed to support 50,000 NRAS properties, with up to 35,000 dwellings across the country by 30 June 2014, and the remaining 15,000 by 30 June 2016.
To date 4,178 privately-owned dwellings are tenanted or available for rent across the country under the Scheme.
The privately-owned developments range from studio apartments through to large family homes, and are located in areas identified by state and territory government partners where affordable rental accommodation is most needed.
NRAS complements other initiatives to improve access to affordable housing, including the $450 million Housing Affordability Fund and the $100 million Building Better Regional Cities program.
The assessment of NRAS applications is undertaken jointly between the Australian, state and territory governments, with state and territory governments determining the number of dwellings to be supported in each area based on local needs and priorities for affordable housing.
