[30 September 2022]
The Property Council of Australia has today welcomed the Productivity Commission's landmark review of the National Housing and Homelessness Agreement (NHHA).
Property Council Chief Executive Ken Morrison said the In need of repair: The National Housing and Homelessness Agreement report is a damning indictment of housing policy and supply in Australia, and reinforces many of the Property Council's long held reform priorities.
Mr Morrison said the study reaffirmed the need to urgently tackle the national housing supply crisis and underlined how existing planning systems around the country are failing to meet community needs.
"Today's report reaffirms that we will remain in a housing supply crisis until we improve our planning for new homes of all types," Mr Morrison said.
"We congratulate the Productivity Commission on this piece of work and welcome its recommendation for a major overhaul of housing policy within a framework agreed to by all levels of government.
"As the Productivity Commission states, ensuring housing supply is more responsive to demand will have a powerful impact on affordability and needs to be a key policy focus for governments.
"We wholeheartedly support the evolution of NHHA into a comprehensive framework for national housing supply delivery. It has been little more than a money funnel from Canberra to the states and territories without any consideration of productive housing supply for far too long," Mr Morrison said.
"The Productivity Commission has an important focus on rental housing, which is clearly of great need with rental vacancies at historic lows. "The important role of institutional investment in providing housing choice for Australians is highlighted and we warmly welcome the recommendation for a policy level playing field for Build-to-Rent (BTR) housing.
"The Treasurer has rightly flagged the Government's interest in delivering more institutional investment into housing and now is the time for BTR housing to get the same tax treatment as other property asset classes," he said.
This would also benefit investors in the important purpose built student accommodation sector, which increases housing supply by removing students from the private rental market.
The report, commissioned by the previous Government, makes a series of strong recommendations aimed at improving housing supply, including by the adoption of housing targets together with planning reform to promote density and diversity, and leveling the playing field for BTR housing investment.
"The report also criticises the focus of much of the policy support currently provided to home buyers by governments," Mr Morrison said.
"We agree that some schemes are not sufficiently focused, but reality is that the deposit gap is now so extreme that this is a legitimate focus for policy makers.
"Additionally, the vital role of housing stimulus during extreme crises should never be discounted.
"We welcome the report's focus on social and affordable housing, and the need to be more effective in addressing homelessness. These points are well made and the industry wants to be part of the policy conversation in relation to these important issues.
"The report also rightly places focus on targeting greatest need, and sadly the fastest group of homeless Australians, are older women.
"Earlier this year the Property Council's Retirement Living Council released a problem-solving report Retirement living - a solution for older women at risk of homelessness which recommended improving affordability for older women through broadening access to rental assistance into seniors' communities and this should be part of any review," he said.
