Affordable Housing Action Plan 2007 of Australian Capital Territory (ACT)

Access to affordable housing is a fundamental right and a cornerstone of social equity. In the Australian Capital Territory (ACT), the government has prioritized addressing housing affordability to ensure that all residents, regardless of income or personal circumstances, can access suitable accommodation. The Affordable Housing Action Plan 2007 outlines a comprehensive strategy to tackle housing challenges, from homeownership and private rentals to public housing and supported accommodation. This report summarizes the key initiatives and progress made under the plan, emphasizing the government’s commitment to creating a diverse and inclusive housing market.

Introduction

The ACT Government, under the leadership of Chief Minister Jon Stanhope, established the Affordable Housing Steering Group in 2006 to address the growing challenges of housing affordability. The group was tasked with identifying practical solutions to increase the supply of affordable housing and ensure that all residents, including low-income households, young people, and those requiring supported accommodation, could access suitable housing. The resulting Affordable Housing Action Plan is a far-reaching strategy backed by significant financial commitments, aiming to stabilize housing prices, increase supply, and support vulnerable populations.

Key Findings and Strategic Approach

The ACT’s housing market is generally considered affordable by national standards, thanks to the region’s high average incomes and low unemployment rates. However, certain groups, particularly low-income households and young people, face significant barriers to homeownership and rental affordability. Between 2000 and 2003, median house prices in Canberra nearly doubled, driven by strong demand, low interest rates, and government subsidies like the first homeowners grant. By 2006, the median house price in the ACT was $398,000, second only to Sydney and Perth.

To address these challenges, the government adopted a multi-faceted strategy focused on ensuring a stable supply of affordable housing, promoting diversity in housing options, and supporting vulnerable populations. The strategy aims to reduce homelessness, enhance community well-being, and stimulate economic growth by attracting essential workers and fostering a diverse housing market.

Homeownership Initiatives

Homeownership remains a key aspiration for many Australians, but rising prices have made it increasingly difficult for first-time buyers to enter the market. The ACT Government has implemented several measures to support homeownership, including:

1. Land Supply Management: The government released a land supply strategy for 2006-2011, aiming to provide 11,000 to 14,000 dwellings over five years. This includes over-the-counter land sales and englobo releases to limit speculation and ensure a steady supply of affordable land.
2. Diverse Housing Products: The housing action plan emphasizes the need for diverse housing options, including affordable house and land packages priced between $200,000and$300,000. Demonstration villages showcasing sustainable and accessible housing have been introduced to encourage innovation in the housing market.
3. Financial Support: Initiatives such as the Home Buyer Concession Scheme, land rent schemes, and shared equity programs aim to reduce the financial burden on first-time buyers and low-income households.

Private Rental Market

The private rental market in the ACT is dominated by small investors, with approximately 26,000 dwellings available for rent. However, low vacancy rates and high rents have made it difficult for low-income households to access affordable rental properties. To address this, the government has:

1. Increased Supply: Encouraged institutional investors to develop 200-400 private rental dwellings, with potential for shared equity arrangements.
2. Tenant Support: Expanded tenant advocacy services and worked with the Australian Government to improve the effectiveness of Commonwealth Rental Assistance.

Community and Public Housing Action Plan

Community and public housing play a critical role in providing affordable accommodation for low-income households and those with special needs. The ACT Government has committed to:

1. Expanding Community Housing: Established Community Housing Canberra as an independent entity, with plans to increase its asset base by $40 million and deliver 500 affordable dwellings within 10 years.
2. Public Housing Reforms: Adjusted eligibility criteria to prioritize those most in need and explored options for private sector investment in public housing to better match tenant demand.

Supported Accommodation

The Supported Accommodation Assistance Program (SAAP) provides critical services for individuals and families at risk of homelessness. The ACT Government has expanded funding for SAAP and implemented reforms to enhance the program’s effectiveness, including:

1. Crisis Response: Strengthened transitional housing programs and expanded outreach services to prevent evictions and support tenants in moving to long-term accommodation.

Aged Accommodation

With the ACT’s population rapidly ageing, the government has prioritized the development of aged care accommodation. The Building for our Ageing Community strategy focuses on identifying suitable land and streamlining planning processes to ensure adequate supply.

Implementation and Monitoring

The successful implementation of the Affordable Housing Action Plan requires coordination across government and non-government sectors. An implementation team has been established to monitor progress, ensure compliance with land release targets, and evaluate the effectiveness of initiatives. Regular reporting to the Cabinet and the public will ensure transparency and accountability.

Conclusion

The Affordable Housing Action Plan 2007 represents a comprehensive and innovative approach to addressing housing affordability in the ACT. By focusing on increasing supply, promoting diversity, and supporting vulnerable populations, the government aims to create a more inclusive and equitable housing market. Continued commitment to these initiatives will be essential to achieving the plan’s goals and ensuring that all residents have access to affordable and appropriate housing.

For further reading:
Review of the ACT Government’s Affordable Housing Action Plans …

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