$1 billion for 10,000 new affordable rental homes

The Gillard Government today opened a new round of incentives worth $1 billion over 10 years to build 10,000 new affordable rental homes under the National Rental Affordability Scheme (NRAS).

“We know that housing affordability is a concern for many Australians and we’re investing heavily to address that concern,” Minster for Housing and Homelessness Mark Butler said.

“This new round opening today will deliver about 10,000 new affordable rental homes across Australia by 2015-16.

“Through this NRAS round, the Government will look to preference projects that embrace universal design principles, which helps support independent living for older people and people with a disability.”

NRAS offers annual financial incentives, currently valued at $9,981 per year per dwelling, for 10 years, to build and rent new homes or apartments for low to moderate income tenants, at 20 per cent below the market value rent.

“This scheme is helping Australians struggling in the rental market, saving low and middle-income tenants thousands of dollars each year,” Mr Butler said.

Mr Butler said this announcement will not only create a continuous supply of new and more affordable homes, but will create jobs through increased investment in new construction, with Australian sourced building materials also preferred by the Australian Government.

“We want to move as quickly as possible to build new homes in areas that are most in need,” Mr Butler said.

“We remain firmly committed to delivering 50,000 more affordable rental homes by 30 June 2016, three quarters of which has already been built or is under way.

NRAS is part of the Australian Government’s $26 billion investment to help people with home ownership and more affordable rental housing.

Applications for NRAS Round 5 incentives will close on 6 August 2013, with properties to be available for rent from July 2015 to June 2016.

For more information, including application details, eligibility, preferred locations, the number of incentives available in each state and territory and helpful facts, go to: www.fahcsia.gov.au/nras