Homelessness Australia report urges investment to combat rent stress

Coinciding with Homelessness Week, Homelessness Australia has outlined a detailed 10-year plan to end rough sleeping within the ACT.

The advocacy group plan on giving the report to the Albanese government as a guide to try and reduce homelessness rates nationally.

Homelessness Australia flagged housing as a core issue of the current cost-of-living crisis, with rent prices beginning to outstrip people's pay, particularly for low-income households.

The plan released is fixated on cutting rental stress with recommendations of building more social housing and upping JobSeeker payments.

Homelessness Australia chair Jenny Smith said the issue could be fixed within a decade if an adequate plan were installed to address cost hurdles.

"Housing is at the forefront of Australia's cost-of-living crisis which is pushing more and more people into homelessness," she said.

"Rents are skyrocketing while we have a social housing shortfall of 433,000 properties.

"While the situation is dire, the challenge is not insurmountable. That's why we're releasing a plan to cut rental stress in half within five years and end it for good by 2032."

Consumer price index figures on Wednesday revealed annual inflation had risen by 6.1 per cent to June quarter.

Surging inflation running at double the RBA's 2 to 3 per cent target band is expected to push through until next year, with the Treasurer outlining forecasts were showing inflation on track to hit 7.75 per cent this year.

According to the report, rents have increased by 13.2 per cent nationally since 2021, and in some regions, those rental yields have risen by almost 25 per cent.

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In the 2021 financial year, 109,207 people engaged with homelessness services in a bid to find long term housing. Only 3.4 per cent were able to receive adequate housing support.

In the same financial year, 77,943 people needing help were turned away.

Homelessness Australia, within its report, highlights a need to invest into affordable rental schemes and increasing the Commonwealth Rental Assistance program.

Ms Smith noted these investments would help in lowering homeless rates among women, young people and Aboriginal and Torres Strait Islander communities.

"Building more social housing, investing in affordable rentals, lifting JobSeeker and raising Commonwealth Rent Assistance are critical to this plan," she said.

During the lockdowns of 2021, homelessness rates dropped from 40.5 per cent to 29.4 per cent due to added income and rental support by the government.

Approximately 155,000 people avoided rent stress during this period.

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