The passing of the Housing Australia Future Fund (HAFF) is a step towards the right direction for the housing market, but more needs to be done to deliver the target of 1.2 million homes over the five years starting July 2024, experts said.
Property Council of Australia chief executive Mike Zorbas said the agreement to pass HAFF will deliver an additional $1bn in funding through the National Housing Infrastructure Facility.
“A wealthy, land rich nation like Australia should not have a housing deficit — this is welcome news for new social housing and housing supply in general,” he said.
“Now we must turn our attention to the unfinished business of improving our state planning systems so they can deal with the welcome influx of skilled migrants and students over the decade ahead.”
Housing Industry Association managing director Jocelyn Martin said it is crucial to acknowledge that the pledge to provide 30,000 social and affordable homes through the HAFF accounts for just 2.5% of the “aspirational target” to build 1.2 million homes.
“The private sector will still have to do most of the heavy lifting in terms of meeting Australia’s housing needs, and it is being constrained by policy that inflates the costs of home construction and finance,” she said.
“Broader reforms are required to reduce these costs and aid the private sector in enabling the delivery of these targets.”
Here are some of the broader reforms needed to help with the target:
- Planning systems should enable increased higher density residential development in established suburbs close to employment hubs and transportation.
- The release of greenfield land and the development of necessary infrastructure should be accelerated.
- Onerous taxes on both investors and owner-occupiers should be eliminated, and fairer, more comprehensive sources of revenue should be implemented.
- Financial regulations should be streamlined to facilitate lending by banks and borrowing by prospective homebuyers.
“Without these broader reforms, the pressure on social and affordable housing will only increase, and the government’s latest announcement will prove inadequate,” Ms Martin said.
For Ms Martin, the demand for increased housing supply in Australia has grown more pronounced in recent years.
“The rebound in immigration, acute rental shortages and tight labour markets are fuelling demand for housing across Australia, driving rents and dwelling prices ever upwards,” she said.
“It is a relief to see this important enabling legislation has passed through parliament and that the need for greater housing supply across the housing continuum is being taken seriously.”
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.08% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% |
| Disclosure | |||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
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