Thousands of Victorians will have their rent made cheaper by the state government through a new Australian-first scheme.
Thousands of renters in Victoria will have their rent subsidised by the government in a targeted approach to address housing affordability.
In a national first, the government will make at least 2400 homes available to low to moderate income earners.
Families earning less than $132,000 can access the scheme, and will be given the chance to pay rent at a lower rate for at least three years, with help from the government.
Announcing the scheme on Friday, Housing Minister Richard Wynne said applicants would not need to be eligible for social housing to be accepted.
“The scheme will help sustain and grow affordable housing and ensure more Victorians have the safety, security and dignity of a home,” he said.
“This Australian-first program is a financially sustainable investment in boosting housing affordability and will encourage the rental market to provide more and better options for Victorians looking for a home to rent.”
Families earning less than $132,000 can access the scheme.
Work will begin in the next month to identify rental managers for new properties, with the first renters able to move in an early as the end of the year.
In metropolitan Melbourne, rents will be at least 10 per cent below the median market rent of the area – and capped at 30 per cent of the median income in Melbourne.
In regional Victoria, rents will be set at the median market rental price for that area, as well as limited at 30 per cent of the median income in regional Victoria.
The scheme will be targeted at aged care, retail and hospitality workers who need to find a secure rental.
“With many households experiencing rental stress and spending more than 30 per cent of their household income on rent, the government is working to create new affordable options and encourage more private sector support,” Mr Wynne said.
Properties will be advertised through partner agencies and offered using an eligibility check and selection process.
Eligible households on the Victoria‘s housing register will be encouraged to apply for relevant properties.
At least 500 of the homes will be located in regional Victoria.
Low and moderate income essential workers, including many healthcare workers and carers, will be eligible in areas of workforce shortage in regional Victoria.
The first affordable rental properties are expected to be available in regional Ballarat, Greater Geelong and Bendigo, while the first metropolitan Melbourne homes will be in Ascot Vale, Ashburton, and Heidelberg.