New housing czar appointed to take on ACT affordability crisis

The ACT has a new housing czar based in the Chief Minister’s own Directorate, who will take charge of policy and project delivery across the government.

The new Office of the Coordinator-General for Housing within the Chief Minister, Treasury and Economic Development Directorate will bring all policy initiatives and activities under one roof in a bid to meet the growing Territory’s housing needs, with an emphasis on boosting the number of affordable homes and easing the rental crisis.

Led by Deputy Under Treasurer Stephen Miners, the new Office comes after long-running criticism of the government’s housing policies from industry, the community sector and the Opposition as the Territory endures the highest rents in the country in an extremely tight market and a lack of affordable homes for sale.

One of its first actions will be to oversee the re-establishment of the Rent Relief Fund, which will provide targeted, short-term support for low-income households in the private rental market that are experiencing rental stress or severe financial hardship.

The Fund will be available until 30 June 2024 and provide grants for up to four weeks’ rent, capped at $2500. Approved applicants will also be offered support services to help them manage their tenancies over the long term.

The new Office will also work with the Albanese Government as it rolls out the first initiatives of the Housing Accord, which aims to deliver a million well-located homes across Australia in collaboration with all levels of government, institutional investors and the construction sector.

Chief Minister Andrew Barr said the Housing Accord represented the first opportunity in a decade to align housing policy settings across all levels of government.

“It will also require a significant amount of policy and implementation work,” he said.

“The establishment of the Office will coordinate efforts centrally within the ACT Government and in our engagement with the Commonwealth Government to get on with improving housing affordability, access and choice.”

The Office will both oversee the delivery of major projects and coordinate activities across the ACT Government.

Its brief is to deliver policy, legislative, procurement and planning reforms that increase housing access, affordability and choice.

The Office will take charge of the Indicative Land Release Program and deliver more stamp duty cuts for owner-occupiers as part of the tax reform program.

It also will work to help more first homeowners into the market with improved access to mortgage finance and better loan serviceability.

In the rental space, the Office will manage direct procurement and/or market incentives for Build-to-Rent and affordable housing, as well as increased access to secure, affordable rental options.

The Office also aims to create more housing options for low-income Canberrans, including a bigger role for the community housing sector and continuing the public housing renewal program through Housing ACT.

Chief Minister and Treasurer Andrew Barr said the new Office was in response to the ACT’s booming population growth and the accompanying increased demand for housing, which required a whole-of-government approach.

“We have had the fastest growing population of any jurisdiction over the last 10 years, growing from 370,000 to around 460,000,” he said.

“Population growth will continue in the coming decade and housing demand will grow.”

Mr Barr said that over the next five years, the government would release more land, undertake the biggest growth and renewal of public housing stock since self-government, and upcoming reforms to the ACT’s Territory Plan would support more housing opportunities for more Canberrans over the next decade.

Community housing would play a greater role and providers already benefited from existing tax concessions regarding Build-to-Rent developments and the government had worked extensively with Community Housing Canberra to refinance its balance sheet so it could grow its affordable rental housing stock.

“We will continue to work closely with the sector with further policy to be implemented, particularly given the Commonwealth establishment of the Housing Australia Future Fund (subject to legislation),” Mr Barr said.

While increasing rental supply was the government’s highest priority, the Office would also review existing Territory schemes for first-home buyers, Mr Barr said.

The housing industry will be pleased to hear the government intends to increase the rate of land being released for new housing.

Mr Barr said the government was continually releasing more land and had extended the Indicative Land Release Program to five years.

“The district planning strategies – currently subject to consultation – will provide further information regarding proposed, possible and potential key sites and areas,” he said.

But this would not mean a dramatic increase in urban infill development or apartments.

“The government’s objective is gentle urbanism,” he said. “A steady and orderly process, with an expanded focus on new medium density dwellings such as townhouses, terraces, villas, duplexes and dual occupancies.”

Canberra Liberals Leader and Housing Affordability and Choice spokesperson Elizabeth Lee said Mr Barr had lost confidence in his ministers to address the housing crisis.

“The fact that this new position will be within the Chief Minister’s own Directorate is a clear indication he has lost confidence in both housing ministers and is making sure he takes control over what is happening. If he does not trust his ministers, he should tell them to go,” Ms Lee said.

She said the ACT’s housing issues had been exacerbated by Labor-Greens government decisions but welcomed the new Office’s goals.

“The priorities that have been outlined for this new position are the exact priorities that the Canberra Liberals have been calling for,” Ms Lee said.

“My focus is on ensuring Canberrans have genuine choice when it comes to housing and that a local government can exercise whatever levers within our control to do what we can to ensure that every Canberran has the opportunity to live in their own home,” Ms Lee said.