A review of private rental support programs
This Positioning Paper introduces a project undertaken by a team of AHURI based researchers to review Private Rental Support Programs (PRSP) in each Australian State and Territory and judge their effectiveness in assisting tenants on low-incomes. The research is premised on the assumption that the expenses associated with home ownership and the limited availability of public housing has made the private rental market the most feasible option for many low-income households. However, the startup costs incurred when moving home can result in financial stress, making it more difficult for a household to manage their new tenancy successfully. Private Rental Support Programs is the generic term used to describe the range of services resourced by State Housing Authorities (SHAs) to assist low-income households seeking private rental accommodation. The programs are intended to be ‘one off’ forms of support and are additional to, but separate from, Commonwealth Rental Assistance (CRA). The type of support provided varies from State to State but can entail bond loans, rental grants, reimbursement of relocation expenses and other ‘one off’ grants. The literature review undertaken for this Positioning Paper shows that: • There is a dearth of literature generally both nationally and internationally about the operation and efficacy of PRSP. What evidence there is suggests that Australia has one of the most comprehensive PRSP aimed at facilitating the access of lowincome renters to private rental accommodation and promoting the sustainability of those tenancies • All jurisdictions in Australia provide support to low-income renters to access the private rental market. However the extent and operation of schemes varies between jurisdictions. New South Wales, Victoria, Tasmania and Queensland provide the most extensive range of assistance options. The differences between jurisdictions make comparison, in terms of effectiveness, difficult • Programs that are in place both nationally and internationally are viewed positively by tenants and welfare agencies, though there is evidence that some landlords are reluctant to participate in these arrangements • It is evident that the effectiveness of PRSP in promoting sustainable tenancies is often hindered by tight market conditions; for it is in these circumstances that tenants experience the most difficulty in accessing affordable properties.
