Modest rent increases of between $4 and $7 per week for some social housing tenants will come into effect next month to help make the system more equitable.
As highlighted in the 2018-19 State Budget, rents for about 3000 tenants living in bedsit accommodation and one-bedroom cottage flats will gradually increase from 19 and 21 per cent of accessible income to 25 per cent gradually over a period of years.
This will bring those tenants in-line with the 90 per cent of Housing SA households who already pay 25 per cent of their income – or market rent, whichever is cheaper.
Affected tenants will be notified by letter this week.
Minister for Human Services Michelle Lensink said the modest, gradual rent increase would bring all social housing rents into line.
“Currently, of the approximate 35,000 public housing properties in the system, about 90 per cent of households already pay 25 per cent of their household income towards rent,” said Minister Lensink.
“Some tenants living in cottage flats were paying less than others – around 19 per cent or 21 per cent of their household income – despite living in similar properties and having similar incomes.
“These changes make the system more equitable and mean all public housing tenants pay the same portion of their income (25 per cent) towards rent.
“To ensure households can plan ahead, it was decided the increases would be modest and would occur gradually over a period of four years.”
In November 2018, there was an initial increase of 1.5 per cent and this year, the 1.5 per cent increase will be applied next month for the 3000 affected tenants.
Background:
In its 2011 Budget, Labor immediately increased Housing SA rents from 17 to 19 per cent of income for tenants living in bedsits and from 19 to 21 per cent for those living in one bedroom cottage flats, which back then equated to about $8.40 per week for a single pensioner.
Despite this, Opposition leader Peter Malinauskas told ABC radio September last year, Housing SA rents were “never increased” under Labor.
