This research investigates how policy-makers and housing providers can use other forms of housing assistance to support people who are otherwise eligible for social housing.

In 2021-22, across Australia over 174,600 households had applied to live in social housing but only 29,100 households—usually those with complex or acute needs—were offered a home. The shortage of new social housing lettings means many applicants have no guarantee of when they will be housed. As a result, assisted access to private rental tenancies has become increasingly central to housing assistance programs. 

Private rental assistance is typically targeted at applicants whose needs are less acute. However, there is a question whether these forms of assistance are effective. It is estimated that only around 11 per cent of private tenants have a lease of two years or longer, and that 31 per cent of recent moves by these households were forced. Furthermore, 60% of social housing tenants who had previously received private rental assistance had not been able to sustain their private rental tenancy. 

Most private rental assistance products have affordability cut-offs such that applicants can only receive support if the rent for the property they are applying for is less than 50–55 per cent of their income. Because rents are too high for the eligibility requirements. private rental assistance recipients are finding it increasingly difficult to secure private rental properties that conform to the affordability cut-offs.

The research identified a range of opportunities to improve current processes for managing private rental assistance for social housing applicants, including making sure the application process and the housing assistance system is clear and accessible, and developing individual plans for clients to enable them to access other services that are available to them, including private rental assistance.

Policy development options:

• Housing assistance applicants should have guaranteed access to personalised advice or assistance during the application process for the best possible chance of achieving an outcome appropriate to their needs and preferences.
• Housing providers should adopt the practice of engaging with clients in the making of individual housing plans, which are also regularly revised.
• As well as greater engagement, collaboration and communication, housing assistance providers should make greater efforts to assure assistance and make decisions that are open to scrutiny and challenge.
• There is scope for state/territory governments to establish partnerships with private landlords to secure rental tenancies for low-income families who receive PRA products.