Labor Pledge on Big Issue Affordable Housing Scheme

The Labor Opposition in Victoria has pledged financial support for The Big Issue’s new ‘Homes for Homes’ initiative, which encourages people selling their homes across Australia to donate a percentage of the sale price.

The Labor Opposition has pledged $500,000 if it wins the State Election at the weekend to  provide seed funding for the Homes for Homes national headquarters in Melbourne’s CBD, which will get the program up and running to provide affordable housing.

The Big Issue says it has already undertaken the business case and is planning works for Homes for Homes, which will allow home-sellers to donate 0.1 per cent of the sale from their home to fund social housing across the country.

“In Victoria, residential home sales data shows that people buy and sell their homes every seven years on average. The Big Issue estimates that Homes for Homes can tap into this to make a real difference,” CEO of The Big Issues Steven Persson said.

“Homes for Homes will rely on home owners, as well as developers, real estate agents and other stakeholders, to make a tax deductible donation of 0.1 per cent from the sale price from residential property sales.”

“The Big Issue has a big idea – help homeowners make a meaningful difference in the lives of the homeless,” Shadow Minister for Housing Richard Wynne said.

“Victorians are generous people, digging deep for Royal Children’s Hospital Appeal or simply buying the Big Issue.”

“Homes for Homes will help create jobs and help break the cycle of homelessness for thousands of people across the country,”

The Big Issue estimates the program could raise $1.8 billion over 30 years, which could create over 2600 social housing dwellings.

“Lack of affordable and social housing is becoming Australia’s most significant social issue. We currently have a shortage of 170,000 affordable houses, over 100,000 Australians homeless every night, and 1.1 million people in housing stress. Now, homeowners have the opportunity to be part of the solution by signing up to Homes for Homes,” Persson said.

“Over the next 20 years, the shortage of affordable houses in Australia will increase to 600,000 houses due to a severe lack of funding for new housing projects.”

Under the scheme, homeowners make a commitment to donate a tax deductible 0.1 pr cent of their property price to Homes for Homes at the time they sell. For example, a $400,000 property transaction would mean a $400 contribution.

“Funds raised through Homes for Homes will go towards funding new affordable and social houses,” Persson said.

“This donation is made through a simple change to the property title, known as a caveat, at the request of the property owner. This caveat stays in place when the property is transferred to the new owner to allow a donation to be made every time the property is sold in the future. However, new property owners could also remove the caveat at any stage at a minimal cost if they do not wish to take part in the scheme.

“With support from homeowners, Homes for Homes will drive significant long-term change to raise funds for affordable homes, ensuring that future generations have access to safe and secure accommodation.

“Funds raised through Homes for Homes will be distributed to existing social and affordable housing service providers to build properties based on the areas of greatest housing need.

“Examples of housing projects that could be funded through Homes for Homes include emergency housing for women and their children, specialised youth housing centres and housing for low income earners seeking accommodation in reasonable proximity to employment and transport hubs.”