Individuals who rely on income support or live on minimum wage are systematically excluded from the private rental market, often resorting to inadequate and unaffordable rental accommodation. That’s according to findings from the 8th Anglicare Rental Affordability Snapshot, released today by the Anglicare Australia network which includes Anglicare Victoria.
Anglicare Victoria Chief Executive Paul McDonald said greater guaranteed pathways are needed for vulnerable individuals, to ensure they receive their right to secure affordable and appropriate housing.
“The 8th Rental Affordability Snapshot again shows how our most vulnerable communities continue to be left out in the cold, year after year. It’s time for Governments to assert its considerable capacities and create affordable rental solutions.”
“Whilst much of the debate centres on people’s ability to purchase a home, more dramatic implications are on those who rent,” said Mr McDonald.
“If you are a young person receiving Newstart or Youth Allowance, a mother fleeing family violence or a family or individual living on minimum wage, how can you be expected to pay for life’s essentials including food, medication, bills and school expenses, when a high amount of your income would be spent on rent?” he asked.
The report found that young people on income support payments face serious difficulty when faced with finding an affordable and appropriate rental.
“To have only four properties in Victoria, including share houses being seen as affordable for those on Youth Allowance tells us what type of trouble we are in as a country.”
“The housing market continues to deliver a group of zeros to those on low incomes. The myth that market forces will ensure low income earners can access people into appropriate housing is delusional and that is why Government must act on rental affordability,” said Mr McDonald.
Anglicare Victoria CEO Paul McDonald is available for interviews.
Further enquiries contact: Media and Communications. media@anglicarevic.org.au Tel: 0419 035 117
READ THE RENTAL AFFORDABILITY SNAPSHOT
RENTAL AFFORDABILITY SNAPSHOT FACT SHEET.
How the data was collated: The Victorian Snapshot covered 48 Local Government Areas (LGAs) from across Metropolitan Melbourne, as well as regional and coastal areas of Victoria, consistent with Anglicare Victoria service localities. The RAS defines affordable rental as one which costs less than 30% of the household’s total income. Appropriateness was defined according to the number of bedrooms required for each household type. The data was sourced from realestate.com.au on the weekend of April 1st and 2nd , 2017.
The Victorian data shows that:
- Although families on the minimum wage have slightly greater access to the private rental market, less than 25% of available rentals are appropriate and affordable.
- Three of the 10 most affordable LGAs are characterised by high levels of social and economic disadvantage, meaning individuals and families are faced with the choice of affordable housing in locations where there is high unemployment.
Out of 14,203 private rental listings in Victoria on the weekend of 1-2 April 2017:
- Only two properties were affordable and appropriate for a single person on Newstart allowance (< 0.1%)
- Only one property was available and appropriate for a single person aged over 18 on Youth Allowance (< 0.1%)
- Only 73 properties were available and appropriate for a single person on the Parenting Payment with one child under five (approx. 0.5%)
- Single people on the minimum wage across the 48 Victorian LGAs have access to only 159 (1.1%) of rental properties that are affordable and appropriate.
Mr McDonald called for:
- State funded out of home care to be available to young people up to 21 years of age. In addition, a call for Government funded housing options for care leavers, which would result in demonstrably improved outcomes for this group who are among some of the most vulnerable and disadvantaged members of our communities.
- Increase the rate of Youth Allowance and the Newstart Allowance to open up opportunities in the share accommodation market for people who otherwise struggle to gain appropriate and affordable housing.
- Greater government investment in targeted social and public housing. All levels of government need to consider alternative and creative solutions to the housing affordability crisis for all segments of society, not just first home buyers.
- Ongoing work to ensure that parents and children leaving family violence have access to dedicated, safe and affordable housing.
What the data shows:
- Overall, households on income support are effectively locked out of the market in Metropolitan Melbourne.
- The broad patterns of rental affordability remain unchanged. This year there was an appreciable decline in the total number of rental properties on the market at the time of the Snapshot.
- Single parents with children whose primary source of income is the Parenting Payment or Newstart have access to one rental property across the 30 LGAs in Metropolitan Melbourne. There is slightly greater access for single parents on income support in regional, rural and coastal LGAs, however only 2% of available listings are appropriate and affordable.
- Young people on income support payments, especially Newstart and Youth Allowance simply do not have access to any affordable and appropriate accommodation in the private rental market.
- There continues to be a regional versus urban divide, whereby low income earners have much greater access to appropriate and affordable housing in regional, rural and coastal areas of Victoria. Overall rental stock in these areas can be quite low, resulting in potentially high competition for a scarce resource.
Most affordable rentals in Melbourne Metropolitan region
The most affordable/appropriate properties for at least one household type on the minimum wage only were:
1. City of Melton (122)
2. City of Cardinia (303)
3. City of Latrobe (254)
4. City of Nillumbik (106)
5. City of Wyndham (530)
6. City of Casey (595)
7. City of Hume (261)
8. City of Whittlesea (259)
9. City of Brimbank (71)
10. City of Frankston (355)
(Data denotes number of suitable listings in LGA (inclusive of realestate.com.au listings) minimum wage only.)
Most affordable rentals in regional, rural and coastal LGAs in Victoria:
The most affordable/appropriate properties for at least one household type on the minimum wage only were:
1. Mitchell (6)
2. Swan Hill (7)
3. Murrindindi (32)
4. Gannawarra (39)
5. Macedon Ranges (154)
6. Central Goldfields (45)
7. Ararat (4)
8. Wodonga (111)
9. Bass Coast (115)
10. Campaspe (122)
(Data denotes number of suitable listings in LGA (inclusive of realestate.com.au listings) minimum wage only.)
