Rental affordability at all-time low

Rental affordability for households on income support has fallen to its lowest level since Anglicare Tasmania’s annual survey began 18 years ago.

The Rental Affordability Snapshot reviews properties listed for rent on a weekend in March and then assesses if they are affordable and appropriate for households on low and fixed incomes, such as the Age Pension, JobSeeker and Youth Allowance.

In response to the findings, Anglicare calls on the Tasmanian government to:

• reform the Residential Tenancy Act to give tenants greater stability and security;
• develop a strategy that supports healthy ageing in place; and
• build more social housing to address failure of affordable private rental market supply.

Anglicare Social Action and Research Centre (SARC) Coordinator, economist Mary Bennett, said rapid rises in the cost of living and rents had severely limited the housing options of the 134,390 individuals and families reliant on income support in Tasmania, and other minimum wage-earners.

“There were 1,127 properties listed for long-term residential lease across Tasmania on the Snapshot weekend, which is a modest 9% increase from last year,” Ms Bennett said. “However, there has been a 58% fall in listings since 2013, and these properties include sharehouses, when sharing is often inappropriate due to a person’s disability or stage in life.”

The Snapshot showed that of the 1,127 properties listed, none were affordable and appropriate for single people living on income support who wanted to live on their own.

“It shows that only families with two working parents can afford a rental in Tasmania, and even then they may need to move into a new community away from their support network, employment and school,” said Ms Bennett.

The Snapshot also showed:

• Only one room in a sharehouse in the entire State was affordable for a single person on JobSeeker and there were none for people on Youth Allowance.
• The 27 properties that were affordable for people on the Age Pension were all rooms in sharehouses except for two units in Rosebery.
• Only two units in the entire State were affordable for single people reliant on a Disability Support Pension and they were unlikely to be appropriate because of their remote location.
• Only 17 properties were affordable for couples relying on the Disability or Age Pension. Six of these were in remote or rural locations.
• Only 12 properties statewide were affordable for families with two children relying on JobSeeker payment, three-quarters of which were in remote locations.

“We already know that people waiting for social housing are experiencing homelessness. Now we know that many people who can afford the small number of affordable properties in the private rental market are being out-competed and pushed into homelessness too. They include young people, families with young children, people living with a disability and older people,” said Ms Bennett.

“We are alarmed to note the growing number of older Tasmanian renters who are unable to find a home that suits their needs. We urgently need more affordable housing that is co-located with employment, transport, schools and health and community services.

“It’s important that the Tasmanian government targets a healthy 3% vacancy rate in the private rental market and is more proactive in reaching and maintaining that target. An increase in the number of properties will ease rental pressure and make it easier for people to secure a property that suits them.”