Housing Australia Future Fund paves way for new social and affordable homes

After months of negotiations, the Greens have confirmed their support for the federal government’s centrepiece housing policy, the Housing Australia Future Fund (HAFF).

Julian Thomas
Partner

In exchange for the Greens’ support, the government committed a further $1 billion in public and community housing spending this year to be distributed through the National Housing Infrastructure Facility. This is on top of the $2 billion announced in June toward Social Housing Accelerator payments to state and territory governments to rapidly fund new social housing supply.

The passing of the bill, a key election commitment for Labor, will establish a $10 billion investment fund intended as a long-term response to address Australia’s shortage of affordable housing. From 2024, dividends from the HAFF – estimated at least $500 million a year – will deliver 30,000 new social and affordable rental homes in the first five years. The HAFF will also help to address some of Australia’s most acute housing needs, with investments in improving housing in remote Indigenous communities and increasing housing options for women and children impacted by family and domestic violence and older women at risk of homelessness.

The HAFF is a critical step in easing the housing crisis and creating a pipeline of funding to expand housing supply for those who need it most.
— Julian Thomas

Critics of the bill say it doesn’t go far enough to address the shortage and that boosting supply without providing immediate relief to renters will not fix the housing crisis. However, calls to introduce rent freezes and caps as part of the HAFF were rejected by the government on the grounds this could deter investment in new housing and ultimately lead to higher rents.

Currently in Australia, there is an estimated shortage of 640,000 social and affordable homes and this is expected to grow by 75,000 over the next five years. While greater investment will certainly be needed to address unmet demand in the system, the HAFF is a critical step in easing the housing crisis and creating a pipeline of funding to expand housing supply for those who need it most.

In recent work with government, private, and for purpose clients, our multidisciplinary focus has been how to unlock and deliver the best value from investment in housing. The scale of the challenge is immense, but with catalytic seeds of change like this one, the ability to make a difference will grow.

It is important to acknowledge this important milestone, and to work together on realising its potential.

If you would like to know more or discuss your own delivery requirements, get in touch.

Published: September 15, 2023