AS part of the Federal Budget, the Albanese Government last week announced the National Housing Accord, a landmark agreement to address one of our nation’s biggest economic challenges: the supply and affordability of housing.

It will align for the first time the efforts of all levels of government, institutional investors and the construction sector to help tackle the nation’s housing problem.

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The shared ambition is to build one million new well-located homes over five years from 2024.

The Accord recognises most of this supply needs to come from the market, with government playing a key role in enabling and kick-starting investment.

A joint statement from Treasurer Jim Chalmers and Minister for Housing Julie Collins said, “We want more Australians to know the security of decent housing and more Australians realising the aspiration of home ownership.

“It’s more important than ever that we work together to ensure there is an adequate supply of affordable housing where it is needed – close to jobs, transport and other services.”

The Budget delivers $350 million in additional Federal funding to deliver 10,000 affordable homes over five years from 2024, on top of existing election commitments. This funding will incentivise superannuation funds and other institutional investors to make investments in social and affordable housing by covering the gap between market rents and subsidised rents.

“State and territory governments have agreed to build on our additional commitment with up to 10,000 new homes as well, delivering up to 20,000 new affordable dwellings in total.”

The Accord also covers a range of immediate actions and areas for further work to support a sustainable, long-term pipeline of additional housing supply and help take pressure off affordability:
● States and territories to expedite zoning, planning and land release for social and affordable housing
● The Commonwealth to provide financing options through the Housing Australia Future Fund to facilitate institutional investment in social and affordable housing
● Working with local governments to deliver planning reforms and free up landholdings
● Institutional investors to leverage investment that delivers for their members’ interests and for the national interest
● Construction sector peak bodies to support high energy efficiency rating construction, the training of more apprentices under an extended Australian Skills Guarantee and work to make housing more responsive to demand.

“The Albanese Government’s ambitious housing reform agenda aims to support more people into home ownership and improve the supply and quality of social and affordable housing.

“The Accord is the next step in our efforts to improve housing outcomes for the benefit of all Australians, our communities and our economy.”

Treasurer Matt Kean said NSW welcomed the landmark agreement of the Commonwealth, States and Territories, the Australian Local Government Association, institutional investors including superannuation funds, and residential development, building and construction industry representatives.

“The NSW Government in the June Budget committed $2.8 billion in housing investment to support first home buyers, deliver more affordable and social housing and free up more land for new houses,” Mr Kean said.

“The easiest way to get first home buyers into their first homes is through the NSW Government’s first home buyer choice initiative, which last week was backed by former prime minister Paul Keating, but continues to be opposed by NSW Labor.

“NSW will continue to explore further opportunities to free up landholdings for affordable housing under the Accord which builds on our existing commitments and will deliver even more housing from 2024-25 onwards.”

NSW Minister for Planning and Homes Anthony Roberts said the Accord will help address Australia’s housing supply challenges and enable the delivery of more social and affordable housing.

“It recognises the importance of states and territories to expedite zoning, planning and land releases for social and affordable housing,” Mr Roberts said.

“I welcome the construction sector peak bodies’ commitment under the Accord to support high energy efficiency rating construction and the training of more apprentices under an extended Australian Skills Guarantee.”

Regional Australia Institute (RAI) CEO Liz Ritchie also welcomed the announcement, saying Treasurer Jim Chalmers’ budget announcement “performed a necessary balancing act in addressing the nation’s current and significant fiscal challenges while positioning regional Australia to capture the opportunities before it”.

“The RAI welcomes the Government’s signature Budget commitment to build one million new homes over five years,” Ms Ritchie said.

“The collaboration by all levels of government and the residential development, building and construction sectors, through a new Housing Accord is welcomed.

“As is the Regional First Home Buyers Guarantee, an initiative recommended by the RAI, in its Building the Good Life, regional housing discussion paper released in March.”

Ms Ritchie said the RAI expected that at least one third of the investment in the Government’s touted ‘well located new homes’ including affordable and social housing would be directed to regional areas with acute housing shortages.