Shelter NSW media release — 12 June 2012
The affordable housing advocacy group, Shelter NSW, has welcomed the sparing of affordable-rental housing programs from massive cuts in a context of a deficit NSW Budget.
Acting Executive Officer, Craig Johnston, said: ‘Preliminary analysis of budget figures seems to indicate that mainstream and Indigenous social-housing programs will continue as they are. In general, services in the Family and Community Services cluster have not had to deal with the cuts that will occur in other portfolios. But it is disappointing that the potential of affordable rental housing to stimulate economic activity, as well as meet social need, has not been capitalized on. There is still continued heavy demand for affordable rental-housing. The number of households in social housing, at 141,000, is expected to be the same as last year (2011–12). Yet the budgeted amount of $12 million to the Land and Housing Corporation for new social housing would produce less than 50 new dwellings.’
Mr Johnston welcomed the initiatives to ensure that essential urban infrastructure was provided, both in fringe areas and existing areas (Epping and Green Square) in Sydney, in the Hunter, Illawarra, Central Coast, and Mid North Coast.
The nontargeted nature of the subsidies to homepurchasers could have a perverse impact of boosting price-inflation of private dwellings in Sydney, despite the government’s concern to avoid this.
It’s a concern that the subsidies are also not linked to urban consolidation. Comparisons between the rate of dwelling approvals and completions in New South Wales and Victoria — from which New South Wales is judged unfavorably by some — do not take into account the geographical constraints of Sydney, and Victorian governments’ commitments to urban sprawl, Mr Johnston said. Construction of new dwellings in itself has nothing to do with ecologically-sustainable development, or even necessarily with housing affordability. The ‘Building the state’ package would have been more complete had it included a growth fund for affordable-rental housing, with the right designs and the right locations, so that the poorest households in New South Wales could benefit from the building bonanza, he said.
Contact: Craig Johnston, Acting Executive Officer — 0420 502 708 (m), (02) 9267 5733 ext. 11
