South-west could miss out on state government affordable rental program

The Homes Victoria affordable housing program aims to bring 2400 new rental properties on the market across the state over the next four years at prices low- and middle-income earners can afford.

The scheme is part of the wider Big Housing Build program and the first properties started coming on line in inner Melbourne in January, with the first tenants starting to move in by April.

But the government said the program would also include at least 500 properties in regional Victoria, and has already pledged developments in Bendigo, Geelong and Ballarat.

A government spokesperson said only a small number of the target areas had been announced so far, and the south-west's omission didn't mean it would be left out of the scheme, but said areas like Ballarat had lobbied the government to be included in the roll-out.

The Standard asked Warrnambool City Council whether it had discussed the scheme with the state government, but it did not respond by deadline. Unlike other affordable housing projects, prospective tenants don't need to be eligible for social housing, but they can't earn beyond a certain amount depending on where they live.

In regional Victoria the income cap is $46,660 for a single person, $69,990 for a couple and $97,980 for a family.

When a new property becomes available, eligible renters enter a ballot for a chance to get a lease, which makes the allocation random, rather than needs-based.

The government spokesperson said rents for the properties would be set at least 10 per cent below the market rent for the area, with an additional cap of 30 per cent of the local median income. The leases would all be for three years, with an option for a three-year extension.

South West Coast MP Roma Britnell criticised the Big Housing Build in state parliament in May, saying the $5.3 billion project had added just 75 new social housing properties in the region so far.

She also said the $25 million allocated to Warrnambool "will not even touch the sides". Rental vacancy rates in Warrnambool are just 0.59 per cent, with the average house costing $450 a week.