The Property Council of Australia has welcomed the recent passage of two significant bills that are set to revolutionise the rental housing market in Australia.
The Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 and Capital Works (Build to Rent Misuse Tax) Bill 2024, with amendments, are expected to deliver the largest ever Federal supply of rental homes.
According to Property Council Chief Executive Mike Zorbas, EY modelling indicates that the amended legislation can result in 80,000 new rental homes over the next decade.
This substantial increase in housing supply is expected to provide more opportunities for Australians to achieve their savings goals, including home ownership, due to enhanced rental security.
“The government’s legislation is a welcome investment in 80,000 new, secure rental homes over the next decade. This is the largest ever federal supply of rental homes,” Zorbas stated.
He further highlighted that 8,000 of these would be affordable homes, with 1,200 becoming available for rent in the near future.
Zorbas praised Housing Minister O’Neil for championing this rental supply initiative, noting her pragmatic approach has garnered support from property, community housing, and social services sectors.
The Property Council views this as a positive first step, with ambitions to see even more homes delivered over time.
The build-to-rent model offers professionally managed, resident-focused communities, increasing access to both affordable and market-rate rentals.
This approach has been a successful feature of the US and UK markets, and the Property Council has long advocated for similar investment settings in Australia.
While celebrating this significant milestone, the Property Council remains committed to advocating for ideal build-to-rent investment settings, more retirement living communities, and purpose-built student accommodation.
The organisation acknowledges the crucial role of future Federal parliaments in supporting states and territories to meet the ambitious 1.2 million home housing targets.
This legislation marks a turning point in Australia’s approach to rental housing, promising to deliver much-needed supply and potentially reshape the rental market landscape for years to come.
