Everyone deserves a decent, affordable place to live, irrespective of their circumstances. Unfortunately, both ownership and rental properties have become less affordable with the price of rental properties increasing by 3.4 per cent above the Consumer Price Index in the private market on average. However, the Victorian Labor Government has provided increased levels of funding to assist low income Victorians with the costs of renting or purchasing a property.

Strategy for Growth in Housing for Low Income Victorians
The supply and quality of public and social housing properties across Victoria are being improved under the Strategy for Growth in Housing for Low Income Victorians. Through this strategy, the commitment of $500 million in the 2007-08 budget will provide approximately 800 new and redeveloped public housing units where waiting lists are high, in addition to 230 new rental homes for low-income families and 120 homes for low-income singles in areas of need.

The Victorian Labor Government recognises that people living in public housing have diverse needs and large blocks of flats are not always the appropriate form of accommodation. Under the Building Housing Sector Sustainability initiative, properties that no longer meet current demand patterns will be sold or demolished and replaced through the purchase of 1,200 new rental homes for low-income families and singles.

As part of the largest ever investment in public housing, reforms will be introduced to improve the sustainability of public housing. Rents for all tenants will be reviewed at 26-week intervals and rental charges will be based on household income at the time of the review.

Assistance for Home Owners
The Victorian Labor Government has also extended the $3,000 First Home Bonus until June 2009 and increased the Bonus to $5,000 where the property is a newly constructed home for properties valued under $500,000, purchased as a principal place of residence. In addition to this, the Government has also cut the stamp duty rate for houses between $115,000 and $500,000 purchased as a principal place of residence.