Melbourne’s population has been steadily growing for years and is expected to continue to do so. However, this growth has put pressure on the city’s housing market, causing a shortage of affordable and adequate housing for many. To combat this issue, the Victorian government has implemented a range of planning policy changes and additional measures aimed at addressing the housing shortage and supporting renters. In this blog post, we will explore these changes and measures and discuss how they will impact the housing market in Melbourne.
Planning Policy Changes to Address the Housing Shortage
The Victorian government has made several changes to planning policies to address the housing shortage. One of these changes is a permit exemption for single dwellings. This exemption will enable homeowners to construct or expand their homes without a planning permit, providing a faster and cheaper option for those seeking to improve their living conditions.
The government is also enforcing a fast-tracking of current applications backlog to speed up the approval of development projects and provide solutions to the housing crisis more rapidly. Additionally, commercial buildings will now be converted into residential housing to increase the supply of housing units in the city. This will happen by converting unused or empty buildings into liveable spaces, such as apartments.
The Victorian Homebuyer Fund is being boosted by AUD 500 million to support first home buyers and assist them with obtaining housing in the current market landscape. The Short Stay Levy will also be introduced to regulate short-term and holiday rentals, with the revenue generated going towards supporting the affordable housing sector.
Investments from the Regional Housing Fund will be focused on building affordable housing options in regional parts of the state, bringing increased housing choices and affordability to those living outside the city. Lastly, rental bidding and rent increases between successive fixed-term rental agreements are now banned, creating more stable housing opportunities for renters.
Additional Measures to Support Renters and Provide Affordable Housing
In addition to planning policy changes, the Victorian government has introduced additional measures to support renters and provide affordable housing options. Notice of rent increase and notice to vacate periods have been extended, providing renters with increased security and protection. The Victorian Property Fund is also establishing a Rental Stress Support Package aimed at providing additional support to those experiencing rent stress.
A portable rental bond scheme is being introduced, with a total of AUD 9.8 million in funding, enabling renters to transfer their bond from one property to another, rather than having to recuperate the bond during each move. Lastly, the Big Housing Build has been initiated, representing an AUD 5.3 billion investment in the construction of 12,000 social and affordable homes across metropolitan and regional Victoria.
Melbourne’s housing shortage is a significant issue that impacts many people throughout the city. However, the Victorian government has put forth a range of planning policy changes and additional measures to address this problem and provide affordable and adequate housing to residents. By investing in affordable and social housing options, extending support to renters, and implementing regulations to stabilize the rental market, these changes will positively impact Melbourne’s housing market and prepare the city for continued growth in the years to come.
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