The state government has welcomed a $623 million federal government initiative to boost the number of affordable rental properties.
The National Rental Affordability Scheme will aim to create 50,000 new affordable rental properties for low and medium income earners across Australia over four years and up to 100,000 over the next 10 years.
The scheme, targeted at institutional investors such as banks and superannuation funds, offers incentives to developers at a cost of $623 million over four years.
Under the NRAS, investors who built new rental accommodation and leased it to low and moderate income earners at 20 per cent below market rents would receive an annual $6,000 rental tax incentive per dwelling for up to 10 years.
In addition, the state government would contribute a further $2,000 per dwelling.
Premier Alan Carpenter welcomed Federal Treasurer Wayne Swan's call today for Expressions of Interest in the NRAS.
"This initiative is about easing the pressure on low and medium income earners who are finding it tough in the current rental market," Mr Carpenter said.
"Western Australia is experiencing a significant demand for housing and this scheme will help meet the demand for affordable rental dwellings."
Housing Minister Michelle Roberts said the scheme will complement the state government's four-year, $655 million investment in affordable housing, which started in 2007-08.
The launch came as a new survey by Australian Property Monitors showed double-digit rent increases in most of the major cities in the past 12 months, including a staggering 25 per cent jump in Perth rental units.
