LAND RELEASE 'only tip of housing crisis'

By Colin Brinsden
July 9, 2007

HOUSING groups have warned land release is only part of the solution to the country's housing affordability crisis - an issue that could haunt the Federal Government in this year's election.

Housing affordability came back to the fore last week after the Opposition announced a national summit on the topic on July 26 in Canberra and issued a paper with ideas to solve the problems facing people trying to enter the market and ways to ease soaring rents.

Rising interest rates, ballooning house prices over the past decade and a lack of housing stock have all contributed to the problem.

The Government, conceding first-time home buyers are finding it tough, announced yesterday it would conduct an audit of commonwealth-owned land to determine areas that could be released for new housing to ease the affordability crisis.

The Federal Government called on the states to work in conjunction with the Commonwealth to undertake an audit of all land.

"We're asking the states to join the Commonwealth in an audit of all available land including our own, we do have some land but the states have a lot,'' Mr Howard told the Nine network today.

"We hope they join us because this will help. I hope it will be very, very soon.''

National Shelter, the housing organisation for the disadvantaged, says housing affordability could be the Howard Government's election iceberg, but land supply was just the tip.

"The Federal Government, obsessed with blaming states and leaving the problem to market corrections, at last sees the iceberg looming,'' National Shelter chairperson Adrian Pisarski says.

Affordable home ownership was only part of the problem and land supply only one element of that, he said.

"The greater problem is in the rental market where those unable to purchase are forced to endure high rents for longer, so they never save a deposit even if their incomes can meet mortgage payments,'' Mr Pisarski said.

National Shelter, along with the Housing Industry Association, ACTU, Australian Council of Social Service and the Community Housing Federation, want institutional investment, from the likes of banks and investment houses, to boost the supply of affordable rental housing under a national affordable rental incentive scheme.

In Labor's paper - New Directions for Affordable Housing - it proposes to tackle increasing rents by introducing a tax credit scheme for potential landlords who offered cheaper rental accommodation.

"Housing rents are going through the roof and it is preventing first home buyers from getting into the home ownership market,'' Labor leader Kevin Rudd said today.

Mr Rudd also rejected claims by Treasurer Peter Costello the states were to blame for not releasing enough land for housing.
 
"I don't believe in cost shifting, blame shifting,'' he said.

"Everyone has got partial responsibility here but what I do notice is the State Governments are rolling up their sleeves to do what they can ...

"And I don't see the Commonwealth with its sleeves rolled up.''

However, the Residential Development Council (RDC) welcomed the Government's land audit, saying it was a positive start to the housing affordability solution.

RDC national executive director Ross Elliott noted Mr Rudd also had raised land supply as an issue.

"For that reason alone, Costello's announcement deserves bipartisan support,'' Mr Elliott said.