Tenants on income support face a significant scarcity of available housing options, and levels of Commonwealth Rent Assistance that are not adequate, according to the Tenants Union of Victoria’s latest research.

When considering metropolitan Melbourne and Victoria’s regional cities, the TUV Affordability Bulletin for March 2014 found that all households receiving income support would be spending more than 30% of their income on rent, otherwise known as ‘housing stress’.

Of course, inner suburbs like Balwyn and Brunswick, where the TUV notes that average rent for one-bedroom flats achieve $300 per week, are significantly unaffordable. However, even further out suburbs such as Dandenong and Frankston remain unsustainable for the majority. This will make up part of the TUV’s submission to the Senate inquiry into Affordable Housing.

Regional Victoria is noted as a little more affordable, with Geelong and Bendigo in the least affordable regional cities costing $200 and $165 for a one-bedroom flat respectively.

TUV policy and liaison worker, James Bennett, said that rents are already too high for those receiving Newstart, and that upcoming cuts and proposed welfare payment changes leaves young people and families in a precarious situation.

“Those in the Government repeating the mantra of individual responsibility need to consider the impact these proposed reforms will have on the capacity for our low income youth and families to access affordable, safe and appropriate housing,” said Bennett.

“Rising housing costs consign them to outer suburbs with often poorer employment opportunities and transport options.”

It was also noted that the Department of Human Services data around affordable rentals in the March 2014 month saw metropolitan Melbourne score 0.4% of one-bedroom rentals and 12.1% of three-bedroom rentals in this bracket. This leaves singles on Newstart paying 64% to 96% of their income for a one-bedroom flat, and a couple with two children paying 44% to 93%.

See over page for the Metropolitan area by area analysis.

Melbourne metropolitan affordability:

Source: Tenants Union Victoria

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