Skyrocketing rents are forcing people on income support out of the rental market, according to the Tenants Union of Victoria.
The TUV’s private rental affordability bulletin for the March quarter revealed all Melbourne households receiving income support were experiencing housing stress.
Housing stress is defined as a person or family spending more than 30 per cent of their household income on rent.
In Sunshine, seven out of eight household types experience housing stress when paying median rental prices. The average single student receiving Austudy while living in a one-bedroom flat in Sunshine is paying
74.3 per cent of their income on rent.
TUV spokesman James Bennett said this highlighted the scarcity of affordable housing options for people receiving income support.
“Rents are already too high for those receiving Newstart, and the combination of spending cuts and proposed changes to the welfare payment system means the outlook for young people and families looking for work is increasingly precarious,” Mr Bennett said. “Rising housing costs consign them to outer suburbs, with often poorer employment opportunities and transport options.”
A spokesman for federal Social Services Minister Kevin Andrews said the government was working on a specific review of housing and homelessness.
“The government recognises that housing affordability is a serious concern to many Australians,” Mr Andrews’ spokesman said.
“The government is working to encourage the states and territories to streamline planning and development processes, review taxes and charges levied on housing, and increase the release of land for residential development.
“Once these review processes are complete, the government will be in a much better position to determine what actions are required to implement a realistic, pragmatic and long-term solution to the issues Australia is currently experiencing around housing affordability and homelessness.”
