social-housing

FEDERAL Treasurer Scott Morrison and his state and territory counterparts have signed off on an agreement to develop a new financing model to boost the supply of affordable housing in Australia.

FEDERAL Treasurer Scott Morrison and his state and territory counterparts have signed off on an agreement to develop a new financing model to boost the supply of affordable housing in Australia.

Morrison said the Council on Federal Financial Relations (CFFR) have agreed to “commit to policy action to meet the challenges and opportunities,” on the current state of the housing market.

He added that the treasurers have agreed that housing affordability, particularly in Sydney and Melbourne, is an important issue that requires further action by all governments.

The treasurers have agreed to the establishment of a bond aggregator taskforce. The taskforce will design a bond aggregator model and report to heads of treasuries by mid-2017.
The model will look at ways to pool financing requests to generate more investment.

“One of the challenges that is faced by those developing affordable housing is access to longer-term, affordable finance.

“The access to capital is a critical issue for that sector and this would involve the states and Commonwealth working together to act as a bond aggregator to put finance into those developments,” the treasurer said.

“Treasurers have asked heads of treasuries to report back to the next council meeting on potential options to improve housing supply and affordability,” Morrison said.

Australian Property Journal