Pilot plan to boost regional housing supply: NSW Labor

Continuing its rollout of housing supply pledges as NSE heads towards the next NSW state election (on 25 March), NSW Labour announced on Wednesday (11 January) that it would boost housing supply and “deliver more affordable rental housing for regional New South Wales” if it won.

This would begin with $30 million for a pilot ‘Build to Rent’ program on the South Coast.

The NSW opposition party says, under its plan, Landcom will be tasked with delivering the “extra rental stock” over two years.

Build-to-Rent programs usually involve the construction of multi-unit developments under a single owner, where the property is held long-term for rental purposes, it explained.

The purpose of this scheme is to add to the supply of longer-term rentals in the housing market, it outlined.

NSW Labor reiterated that the state is facing a rental affordability crisis, especially in regional areas where there are “simply fewer options”.

A lack of housing options means many regional communities are struggling to attract and retain key workers, it added.

NSW Labor leader Chris Minns, said: “Communities across regional NSW are in desperate need of affordable rental properties.”

“A Labor Government will directly intervene in regional housing markets to trial ways of delivering affordable rental housing, starting on the NSW South Coast.”

How the scheme will work

According to the Opposition, Landcom will identify existing surplus government land, work with local government on potential sites, and look for opportunities to acquire land to build on.

Any properties built on surplus government land will be subject to Labor’s mandatory requirement of 30 per cent of dwellings to be used for social, affordable and universal housing, it explained.

Additionally, rental properties will be managed by an appropriate government agency – like Teacher Housing or recently announced Homes NSW – or a community partner with any profits to be reinvested into social housing, it said.

Lack of supply is one of the biggest drivers of the housing crisis; this pilot will increase the number of homes available, the party stated.

If it is successful, a Labor Government will look to expand the pilot into other regional areas, it confirmed.

Attracting and retaining staff

NSW Labor NSW Shadow Minister for Planning and Public Spaces, Paul Scully, further explained: “Landcom is well-placed to lead this build-to-rent pilot that will help to increase the supply of rental properties on the South Coast where people are suffering from the dual impact of rising rents and low or no housing availability.”

“The lack of available rental properties is not only impacting individuals and families struggling to find a home, but it is also impacting the ability of businesses to attract and retain staff.”

Shadow Minister for Housing and Homelessness, Rose Jackson MLC, stated: “The lack of options is putting massive pressure on social housing wait lists, as well as forcing people into forms of homelessness.”

“I’ve heard stories of teachers and nurses across regional NSW living in tents or caravans because affordable rentals just don’t exist.”

“Residents of regional NSW have a clear choice in March - more of the same extreme rent rises and almost no affordable rental stock under the Liberals and Nationals – or a NSW Labor Government that takes this challenges seriously and is prepared to get directly involved to solve it.”

Policy pledges to continue

The regional housing supply announcement is part of Labor’s strategy to “make housing more affordable” for the people of New South Wales, it confirmed, with more housing policies to come.

Policies to date include: Removing or reduce stamp duty for 95 per cent of first home buyers; abolishing the NSW Government’s “forever” land tax on the family home; charging the Greater Cities Commission to review and rebalance population and housing growth by setting new housing targets matched to infrastructure, especially around Metro lines; plus introducing a mandatory requirement for 30 per cent of all homes built on surplus government land to be set aside for social, affordable and universal housing.

[Related: Labor pledges to create new housing agency, Homes NSW]