Rental systems in Australia

Summary

This project evaluates the need and potential for reform of 'rent systems' in Australia, focussing on social housing. In this context, a 'rent system' is understood to include 'rent setting', and the relationship of rents to forms of housing assistance, including rebates, rent assistance and supplementary payments. Comprising literature review, review of current systems, and consultation with policy makers, the study considers options for reform of rent policy that are consistent with the objectives of social housing management.

Project Number: 50226
Research Theme: Housing Policies and Programs
Project Leader: Burke, Terry
Funding Year: 2003
Research Centre: Swinburne-Monash

Description

This study was the first accessible and comprehensive study of rent setting principles, problems and practices in Australia, and one of the first internationally. With its emphasis on problem identification and potential for reform, it aimed to fill a major knowledge vacuum. The broad objective was to assess the potential for rental reform in a way which is consistent with the complexities of contemporary social housing management and current funding constraints. It also evaluated the possible implications and opportunities for rent setting reform created by any new funding models resulting from the Commonwealth State Housing Agreement or from affordable housing initiatives.

The major reason for proposing the study was that such a core component of social housing operations should be exposed to critical review and analysis in order to assess the validity of current practice for current and future social housing provision. The specific aims were:

• To document the complex and changing nature of social housing management as it may affect rental systems both nationally and internationally, including debates as to the merits of one size fits all models versus flexible systems which are locality, household type, or amenity specific;
• To audit the current rent setting system in Australia for both the public and community housing systems and to identify any initiative or pilots of reform, e.g. local variations to allow for different housing markets;
• To document changes in rental systems internationally and to evaluate the relevance (if any) for Australia;
• To model the effects of modified forms of rent setting and rent assistance practice, e.g. the different implications for work incentives,affordability, equity, efficiency and financial viability

The methodology for the project progressed through four stages. Stage 1 reviewed current overseas and Australian literature on rental systems. Stage 2 sought to identify the strengths and weaknesses of the current Australian systems, while Stage 3 worked through a complex array of issues related to the principles for rent setting, the relationship of rents to the objectives of social housing, the balancing the demands of affordability and financial viability, etc. This stage included focus group workshops with a small number of SHA and FaCS policy staff to help identify what options these agencies would see as most viable, innovative or interesting and therefore worthy of the more detailed analysis. The final stage drew together material from the extensive review of literature, the interviews with housing providers, the financial modelling and the 'evaluation of the policy options'.

 

More Information

Final Report: No. 095: Rental systems in Australia and overseas
907 KB PDF Document

Research and Policy Bulletin: Issue 075: Social housing rental policy in Australia and overseas
120 KB PDF Document

Positioning Paper: No. 074: Rental systems in Australia and overseas
2.7 MB PDF Document

Audio Briefing: No. 01: Public housing rent policy in Australia and overseas
6.92 MB Audio Document

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