Build-to-rent: a potential solution to Australia’s housing problem

The Queensland state government is launching a $70 million build-to-rent pilot project in a move that will see it partner with the private sector to deliver long-term rental properties and affordable housing close to Brisbane’s CBD.

The program aims to see the delivery of subsidised and affordable housing in developments alongside homes offered at market rent.

In an announcement made ahead of the Mid Year Fiscal and Economic Review today, Treasurer Jackie Trad said the build-to-rent pilot aims to increase the number of long-term affordable rental properties for low-to-moderate income earners.

“We know that housing affordability is a real issue right across Queensland,” Trad said.

“In particular, key inner-city workers, including nurses, hospitality staff and carers can struggle to afford rental properties in the suburb they work in.”

With many priced out of inner city areas, the pilot project will offer a targeted rental subsidy to the private sector in exchange for providing affordable rental housing within 10 kilometres of Brisbane’s CBD.

“This model also has the potential to support hundreds of new jobs as the Pilot Project supports the growth of a new residential property asset class in Queensland,” Trad said.

The build-to-rent model

Build-to-rent residential development has become a popular form of housing in the UK and the US, designed to assist low to middle-income earners such as nurses and childcare workers get into long-term rental accommodation.

It typically involves subsidies to developers with projects on private land, while providing tenants in build-to-rent developments longer contracts and greater amenity than what is available in the private rental market.

“Internationally, build-to-rent has delivered fantastic outcomes and facilities to tenants and we’re looking to see what the market is open to delivering here,” De Brenni said.

 

Source:  (DINAH LEWIS BOUCHER)


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