Systemic failures in the way the Australian property system works are to blame for rising unaffordability, and a radical solution is needed to bring housing within reach, a new report has claimed.
The Unspoken Alternatives to Expensive Housing Report, released on Tuesday by Prosper Australia and The Australia Institute, outlines two options to make housing more affordable, based on schemes already in place in the ACT.
Report author Cameron Murray says market-based solutions and subsidies have failed to address the affordability crisis because it was difficult to find housing available for under market value.
He said the Land Rent Scheme, available to low-income earners, was a good model to follow for making housing affordable.
It allows would-be home owners the opportunity to rent land from the government at 2 per cent of the land value per year. It comes with the condition that the lessee builds a home on the site and lives in it.
While it is not the same home ownership framework as most of Australia, it can be an interim solution for families looking to get a foot on the property ladder or just a reliable, secure place to live. The leases are released in perpetuity.
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