Housing is rapidly shaping up as the key vote decider in the upcoming federal election. With just months until the election, politicians are scrambling to claim the high ground as new figures and a wave of public sentiment support change.
The most recent Housing Industry Association (HIA) National Outlook predicted that if the affordability crisis is left unchecked, it would remain until the end of the decade.
HIA Chief Economist, Harley Dale, said: “It’s time to be smart and fair about housing affordability, particularly with forecast growth in housing starts of only 3% over 2007/08 - a result that will barely touch the sides of the required lift in housing supply.”
A State-Made Crisis?
A recent survey conducted by the Property Council of Australia found that 80% of respondents want the federal government to intervene in state and local government affairs to relieve the crisis. According to the Property Council, previous poll results announced in May attributed 53% of the blame for the housing affordability crisis at the hands of the state and local governments, while 19% blamed the federal government.
Federal Treasurer Peter Costello blamed delays in the release of land due to state governments and local council processes and the costs associated with state taxes and charges including land tax and stamp duty.
On the Eastern Seaboard, where there are marginal seats filled with “Howard’s battlers” and emerging marginal seats throughout the “mortgage belts”, Queensland is the only state to have announced what is, by name at least, a Housing Affordability Strategy.
In a joint statement, Premier Peter Beattie and Deputy Anna Bligh, announced a new Urban Land Development Authority, a review of local councils’ infrastructure charging schemes and that that by next June, all local governments will be required to develop Priority Infrastructure Plans, which set out councils’ plans for their key infrastructure networks.
The Queensland government plans to nominate sites where the Authority will undertake land use planning, amalgamation and acquisition of sites, and then on-sell land to the private sector with approvals subject to affordable housing requirements.
Operation of the Authority, the government said, will be outlined in legislation to be introduced next month and it will begin operating by November.
So What Are the Federal Parties Doing?
As Labor concluded its National Housing Affordability Summit, the government made its move. Community Services Minister Mal Brough, declared that the Commonwealth State Housing Agreement had “failed to deliver additional housing for those most in need” and that the federal government would “radically alter” its approach to the supply of public housing.
Mr Brough said the government “will immediately invite expressions of interest from all parties, including state and territory governments, the non-government sector and the private sector such as major builders and any other interested individuals, groups or organisations, for their proposals and ideas on new and innovative approaches to using the available funds to increase affordable housing supply.”
The announcement followed that of the Treasurer, in which Mr Costello declared he had written to state governments, the housing industry and land developers, to begin the audit of all land to identify land which could be released for new housing.
In response, Labor leader Kevin Rudd announced a $500 million Housing Affordability Fund. He said under the plan:
- Local governments will apply through a competitive process to receive grants to cover some of the cost of new housing infrastructure;
- Local governments, in conjunction with the private sector, will have to outline how their proposals will cut red tape and reform the planning processes; and
- Innovative, development specific proposals from state governments that cut development costs will also be considered.
Mr Rudd said Labor would consider expanding the program subject to the private sector’s ability to increase the supply of homes.
Whatever the current state of policy may be, it is not likely to go unchanged before the election. The recent announcements demonstrate that both parties want to claim the precious vote of the “mortgage belts” and “Howard’s battlers”.