Less than one per cent of rental properties in the Illawarra are affordable for families on supported incomes, new research has revealed.
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Anglicare Sydney’s research reveals less than one per cent of rental homes in the Illawarra are both appropriate and affordable for households on government income support payments.
There has also been a 26 per cent reduction in affordable rental properties for households working on the minimum wage.
Anglicare Sydney’s Rental Affordability Snapshot reviewed 830 properties that were available in the Illawarra region on the weekend of April 1-2, 2017.
According to the research, of the 830 properties advertised, only five were affordable and appropriate for households on income support payments without placing them into rental stress.
Rental stress occurs when more than 30 per cent of a household’s income is spent on rent.
“Urgent action is needed by governments, community and business sectors to alleviate the worsening rental stress we are seeing in Greater Sydney and the Illawarra,” Anglicare Sydney’s manager of advocacy and research Sue King said.
“For the past four years we have seen a decreasing number of properties available for people on low incomes.
“Not only are regional areas around the Illawarra getting as unaffordable as Sydney, our research is finding that the stock of affordable rental properties for households on the minimum wage is declining in the Illawarra as well.”
Karen Walker, community fundraising and public relations co-ordinator for Salvation Army Illawarra said the figures were concerning.
She said there needed to be more assistance for those on lower incomes, “as far as getting them into a safe and secure rental market”.
“We’re seeing a large increase in demand in people coming into our centres for welfare assistance to just cope with the basics of life, and that could be a lot to do with this rental stress they’re experiencing,” she said.
Mrs Walker said there were other related issues prevalent within the region.
“We have a domestic violence and homeless cottage in the Illawarra,” she said.
“We see a lot of women that come through that program, and then go to transitional housing after that, and the need for that is huge.
“And also a lot of the women that we see, they don’t have things like rental histories, so that also becomes increasingly hard. For a person that’s been in a vulnerable situation, to then, say, move out of our refuge into private rental, they want to be in a safe environment. A lot of the options that are presented to them, they don’t always feel that they are the most welcoming places for them then to take their children.”
Stats mark stark decline for the Illawarra
The Property Council of Australia says “the stats definitely haven’t got better”.
According to the snapshot, out of 830 rental properties in the Illawarra region, there were no appropriate and affordable properties for single people on the Newstart Allowance, Disability Support Pension, or Youth Allowance.
There were no properties for singles on the Aged Pension; two properties for couples with two children on Newstart Allowance; two properties for single parents with two children on the Parenting Payment; no properties for single parents with one child on the Parenting Payment; and two properties for singles on the minimum wage.
Last year’s Rental Affordability Snapshot revealed one per cent of rental homes in the Illawarra were suitable for families living off welfare payments, while none were deemed suitable for single parents. No properties were deemed suitable for a single person on Newstart Allowance, Youth Allowance or on a disability benefit.
It marked a stark decline for the Illawarra which was at three per cent in 2015 and four per cent in 2014 for homes suitable for “households on government income support payments”.
Kim Rawson, regional director for the Illawarra at the Property Council of Australia said, “if you look at some previous years’ of the (Anglicare) report, the stats definitely haven’t got better”.
“There’s proof that there’s been a lack of affordable housing in the region, and nothing’s been done about it. The answer’s definitely an increase in supply.”
According to the 2017 snapshot, policy solutions to improve rental affordability for low income households include increases in supply of social housing, raising the rate of Commonwealth Rent Assistance and increasing the Newstart Allowance.
