Affordable housing to disappear

Newcastle is set to lose 226 affordable rental properties over the next six years due to the expiration of the National Rental Affordability Scheme.

Several properties in the Newcastle area are part of the National Rental Affordability Scheme (NRAS) discontinued by the Abbott government in 2014.

NRAS was first introduced by the Rudd government and encouraged medium to large scale investment in affordable housing.

The intention was to have affordable housing stock frequently added, so additional houses were built in replacement when contracts expired.

Newcastle properties that are part of the NRAS have 10-year affordability commitments in their contracts and are due to expire in the next few years. The entire NRAS stock is to be handed over to the market by the end of 2026.

The NRAS quarterly report reveals that Newcastle is set to lose 226 affordable rental properties over the next six years— of those properties, 152 will expire in 2024 alone.

As the demand for homelessness services increases, COVID-19 restrictions ramp up, and Newcastle finds itself in the middle of a housing crisis, the Newcastle Greens are calling on the council to deliver a 15 per cent affordable housing levy.

Ward 2 Greens candidate Charlotte McCabe said they were “extremely concerned” with the lack of planning to address the issue.

“Councillors and council staff must be aware of this NRAS sunset clause, but there’s no commitment to replacing these affordable rental homes, let alone seriously tackling increasing the supply of affordable and social housing,” McCabe said.

“The NRAS expiries are adding yet another layer of pressure to an already dire situation in Newcastle.”

McCabe said the Greens were committed to creating a 15 per cent affordable housing levy on infill developments in the city’s high density and catalyst areas.

“The council has had the ability to implement this levy since February 2019 but have failed to put anything in place while we watch huge towers spring up across our city.”

Lord Mayoral candidate and Greens councillor John Mackenzie said the council agreed to establish a levy scheme in March 2019, but it was yet to be applied.

“We know that more than 7000 social and affordable housing units need to be built in by 2040 in Newcastle alone, but right now, fewer than 130 are in the pipeline,” Cr Mackenzie said.

“The loss of NRAS units means that we are going backwards on housing affordability.”

Cr Mackenzie said the Newcastle region had the state’s largest gap in social and affordable housing.

“More than 1900 households remain in a desperate situation on the waiting list for affordable housing in Newcastle, and we have unprecedented levels of turn away from homelessness services.”

The Newcastle Greens announcement comes as they ready themselves for the local council elections, which have now been postponed until December in response to the state’s coronavirus crisis.

Hayley McMahon