Housing affordability impacted by more than interest rates
Democrats Deputy Leader Andrew Bartlett said today that "politicians mustn't lose sight of the fact that housing affordability is affected by far more than rising interest rates."
"If the housing affordability focus is aimed too much just at the impact of interest rates on existing mortgage holders or first homebuyers, it will miss the reality of the large and growing number of people who still struggle to make ends meet in the private rental market," Senator Bartlett said.
"As the housing affordability crisis lurches towards catastrophe, the focus is still too narrow.
"While keeping interest rates lower assists mortgage payers, there needs to be a comprehensive strategy put in place to address all the other factors leading to higher housing prices and rental costs.
"The Democrats have been calling for years for a national approach to address the housing squeeze but neither major party has been interested in tackling the problem.
The Democrats election platform calls for measures including:
• Better protection for private renters.
• An urgent review of the tens of billions of dollars spent annually on tax-breaks, grants and subsidies that impact on our housing markets.
• Incentives for investors to provide low cost rental housing.
• The provision of increased funding for Indigenous housing.
• The provision of more community and public housing.
"Higher interest rates will always impact negatively on people with a home mortgage, but we must not forget the many other factors which are contributing to the worst levels of housing affordability ever," Senator Bartlett concluded.
You can access the Democrats’ Election 07 Housing platform here:
http://andrewbartlett.com/display/housingaffordability.html
