National Rental Affordability Scheme delivers more affordable housing

The Rudd Government today announced that it will deliver 6,741 new affordable rental homes for low and middle income earners under the second round of the National Rental Affordability Scheme.

The National Rental Affordability Scheme will help build up to 50,000 new properties across Australia by 2012, which will then be rented out at a minimum 20 per cent below market rate.

The Government is investing more than $1 billion in the National Rental Affordability Scheme over the next four years to increase the supply of new, affordable rental homes across Australia.

NRAS provides annual incentives to developers of $8,672 per home, indexed to the rental component of the CPI for a 10 year period.

This new construction work generates jobs by providing work for builders and tradespeople as each dwelling needs to be newly constructed to qualify for Government incentives.

The Government is keen to see low to moderate income workers such as those in childcare, retail and hospitality able to afford to live in areas where their skills are needed.

The Government created NRAS to increase the number of affordable rental properties across Australia and guarantee that they will be rented to people on low incomes including key workers.

The level of interest from the corporate sector has been particularly encouraging in round two and we expect that sector to continue to take advantage of the investment opportunity that NRAS provides.

Rental vacancy rates remain tight across Australia – particularly in capital cities.

This innovative scheme aims to provide affordability in the rental sector by requiring rents to be at least 20 per cent below market value for tenants who meet the income eligibility requirements.