Heated property market sends even public housing market rents soaring

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Public Housing News

Rental Market,Rent Increases

Rent for the vast majority of public housing tenants in Victoria is capped according to income, but advocates say sharp increases in market rents before rebates are applied are causing confusion and concern.

Rising market values have led to steep increases in the rent some public housing tenants are charged before rebates are applied.Rent for public tenants remains capped at a quarter of household income, but advocates say the soaring market value is a symptom of a burdened housing market.

But advocates are concerned the notices were sent in the midst of a cost-of-living crisis, especially for diverse communities who may not speak English at home."A lot of people are very, very worried about it as well."Mr Berih is a community advocate who has lived in a public housing tower in Melbourne's north for decades.A letter dropped in his mailbox in June was the first notice of the scale of the increase, Mr Berih said.

Some advocates say people in this cohort could pay more under the increases, but it's unclear how many.The government's yearly market rent reviews are intended to ensure households pay a fair amount for their accommodation. Katelyn Butterss says anyone who spends more than a quarter of their income on rent should apply for a rebate."When we see huge market increases like this, even within the public housing stock portfolio, it does serve as an indication that there is something deeply wrong with our housing system in Victoria," she said.

"Many of these constituents are confused by these rent increases as they say they have not been given a reason and it has been conveyed as a 'six monthly payment adjustment'," a letter to the minister read. Fatima Payman has joined the club of 'Labor rats' and taken a piece of modern, diverse Australia to the crossbenchIs it safe to travel to Sri Lanka? Tourists weigh up risks after recent economic and political crisesBruce Lehrmann committed to stand trial on two counts of rapeDid you see a series of mysterious fireballs fly through Melbourne's sky overnight? Astronomers say the sightings were...


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