Head leasing programs for low income Australians

The Victorian Government has announced a new $150 million transitional housing scheme to help over 2000 people experiencing homelessness access emergency accommodation in vacant hotels during the COVID-19 pandemic and then to transition to stable, long term housing after April 2021. The scheme includes a head leasing program where the Government will lease 1,100 properties from the private rental market, providing a home for people once they leave emergency hotel accommodation, together with appropriate long-term support for people experiencing mental health, drug and alcohol and family violence issues.

Head leasing is where a private rental property is rented from the landlord/owner by a legal entity, such as a community housing provider (CHP) or a government agency, which then on lets the property to a low income or disadvantaged tenant. In such cases, the CHP or government agency will take responsibility for making sure the property is maintained and that the landlord receives their rent on time. The tenant will pay an agreed rent to the CHP, for example, which in the case of a subsidised rent may be less than the rent paid by the CHP to the landlord.

Across Australia, other state and territory governments operate head leasing schemes for people on low incomes, although the schemes may not be necessarily targeted at (or appropriate for) people experiencing homelessness. Some examples of state managed head leasing schemes are:

Queensland

The Queensland Government operates the Helping Hand Headlease scheme which is targeted at households who can afford and sustain a private rental tenancy but cannot access the private rental market for various reasons, such as having a limited rental history.

New South Wales

In NSW the Department of Communities and Justice (DCJ) undertakes head leasing arrangements with private rental market landlords and then sub-leases properties to clients that have been approved for social housing. The Department sees head leasing as a way ‘to meet excess housing needs that ordinarily would be met with existing housing stock levels’ and a way ‘to meet immediate needs without requiring additional capital funds, particularly in areas where long-term investment is not warranted.’

Tasmania

The Tasmanian Government operates the Private Rental Incentives Program,  a head leasing scheme to encourage private landlords to make available and affordable homes for rent to eligible people on low incomes. The head leasing arrangement is signed between the landlord and Centacare Evolve Housing, a registered CHP, which then signs a sub-lease directly with the tenant. To be eligible for the Program, applicants are aged 18 years or older; able to afford the rent and meet income thresholds; able to live independently (with little to no support); and able to look after the property and meet the requirements of their lease.