‘Build to rent’ properties promising longer tenancies and more security

A new generation of housing has opened in Melbourne’s inner-city, with the promises of longer tenancies and more security for renters.
The government’s Build to Rent housing model incentivises the development of large scale properties that are built specifically for medium to long-term renters instead of buyers.

Minister for Housing Clare O’Neill inspected one of the first projects to open under the scheme.

The government's Build to Rent housing model incentivises the development of large scale properties that are built specifically for medium to long-term renters instead of buyers.
The government’s Build to Rent housing model incentivises the development of large scale properties that are built specifically for medium to long-term renters instead of buyers. (Nine)

The facility, located in the inner-city suburb of Southbank, boasts amenities such as a sauna, gym and “business centre”.

Another perk includes the building’s on-site maintenance, allowing for repairs to be undertaken faster.

“Our government’s really focused on giving Australians more rental options,” she told 9News.

In the final days of sitting week legislation passed through parliament, enabling incentives for providers that develop under Build to Rent.

As part of the scheme, operators must offer five-year leases and reserve 10 per cent as affordable rentals for Australians with lower incomes.

“Home ownership is absolutely our goal for Australians,” said O’Neill.

“But we want the rental experience to be a good one – and if you haven’t rented in a while you probably don’t know that it’s pretty hard out there as a renter.”

The housing model is common in the US and UK, but on home soil prospective tenants face long inspection queues and high rent costs for a standard rental.

That’s in part due to interest rate rises that have been passed on from owners to tenants, combined with increased demand through increased immigration after COVID lockdowns lifted.

Shadow Treasurer Angus Taylor is urging the government to do more.

“We’ve never seen a hit to the household disposable incomes – the standard of living – that we have since labor came to power,” he said.

The standard of living will be back in the focus this week when the government delivers its mid year budget update on Wednesday.

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