Today the Albanese Government has taken steps to establish an initial set of affordability standards for Build to Rent developments to help increase housing options for those that need it the most.
These standards will open the door to more affordable rental housing for more Australians.
The affordability standards will support front line workers on moderate incomes and other hard‑working Australians to find secure, long term rental accommodation in eligible Build to Rent developments.
The Albanese Government is helping to build more houses because that's the best way to make sure people can find a home, whether that's to rent or to buy.
Build to Rent tax incentives are part of the Government's broad and ambitious $32 billion Homes for Australia plan to build 1.2 million well‑located homes by 2029 and take housing pressures off Australians.
The Government has finalised a legislative instrument to establish the initial standards for affordable dwellings from 1 January 2025, following the recent passage of primary legislation that delivers tax incentives to encourage investment and construction in the build‑to‑rent sector.
Under the primary legislation at least 10 per cent of dwellings in a Build to Rent development must be 'affordable dwellings'. The standards require those dwellings to be rented at 74.9 per cent or less of the market rate and set out income thresholds for eligible tenants.
These affordability standards are the first tranche of requirements for the affordable dwellings in eligible Build to Rent developments.
Over coming months, the Government will work closely with stakeholders on the next tranche of affordability standards, including:
- requiring community housing organisations to be involved in managing affordable dwellings;
- preventing Build to Rent operators from including no‑fault evictions clauses in tenancy agreements; and
- ensuring a proportion of affordable dwellings are reserved for lower income earners based on their household income.
Industry estimates show the Build to Rent measure will support the construction of around 80,000 new rental homes over the next decade that will offer longer tenancies and affordable options, giving renters more security and stability.
The Government's Build to Rent measure will operate in addition to state and territory initiatives designed to support the Build to Rent sector.
Build to Rent is a model that has been used successfully overseas to increase housing supply.
This Build to Rent measure complements other measures put in place by the Albanese Labor Government to support renters, including increasing Commonwealth Rent Assistance by 45 per cent to help more than 1 million households with rental costs, and working with states and territories to ban no‑fault evictions and improving rental standards through our Better Deal for Renters.
Our big investment in housing is building more homes for Australians and Build to Rent is an important part of that.
