First home buyers in Queensland using concessions or grants will now be able to sublet a room at their property without being penalised.
The Queensland state government has announced the easing of rental restrictions for first home buyers in a move to boost housing affordability.
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Under the changes, announced by the recently elected Liberal–National Party (LNP) government last Saturday (7 December), first home buyers will be able to sublet a room without incurring a penalty.
Previously, Queenslanders who received stamp duty concessions and grants were legally unable to sublet their property during their first year of ownership.
The change, effective immediately, will be formally enshrined in legislation introduced to Parliament this week.
According to Queensland Treasury modelling, this could encompass around 20,000 Queenslanders a year.
The move marks one of the ways the new state government (under Premier David Crisafulli) is hoping to boost its home ownership rate, given it is the lowest of any state across Australia.
David Janetzki, Queensland’s Treasurer, Minister for Energy and Minister for Home Ownership, said the Crisafulli government would be doing everything it could to boost affordability and supply.
“The Crisafulli government is making it easier for young Queenslanders to get into their first home, by permanently removing the restrictions that prevent first buyers from renting out a room in the first year,” Minister Janetzki said.
“This helps make home ownership more affordable, helping young Queenslanders to get their foot on the property ladder.
“Over the last decade, it has become harder and harder for young Queenslanders to get into their first home, and it now takes a historic high of more than 10 years for an average household to save for a 20 per cent home deposit in Brisbane.
“Renters have also seen their weekly rents climb due to plummeting supply, rising more than 17 per cent in Brisbane in just the last two years.
“Our common-sense plan to boost affordability and supply will stem the tide by providing more housing options for Queenslanders.”
Boosting home ownership
Other home ownership moves outlined in the Crisafulli government’s plans to improve home ownership rates include abolishing stamp duty on all new builds for first home buyers and a $165 million shared equity scheme – limited to 1,000 buyers – where the LNP government would take a 25 per cent stake in existing properties and a 30 per cent state in new builds.
Under the scheme, first home buyers would be able to acquire a property valued up to $750,000 with a 2 per cent deposit.
“Queenslanders voted for a fresh start, and we’ve wasted no time in addressing the issues of youth crime, health, housing and cost of living,” Crisafulli said.
“We made a commitment to Queenslanders, and I will be holding ministers accountable to delivering on our 100 Day Plan promises.”
No single ‘silver bullet’ solution: HIA
Responding to the announcement, Michael Roberts, executive director – Queensland for the Housing Industry Association (HIA), said the industry advocate body supported the decision to ease rental restrictions for first home buyers but added more work would be needed.
“To comprehensively address the much-publicised housing crisis in Queensland, we will need to see a broad range of practical measures implemented, as there is no single ‘silver bullet’ solution to this problem,” Roberts said.
‘Urgent need for rental supply’: REIQ
Kat Beavon, the acting CEO of industry body the Real Estate Institute of Queensland (REIQ), also welcomed the move, saying: “Making the recent changes permanent, which allow first home buyers receiving concessions to rent out unutilised rooms, is a common-sense measure that delivers wins for both buyers and renters.
“It not only encourages home ownership and eases the financial strain of high purchase prices and interest rates but also addresses the urgent need for rental supply in Queensland’s tight housing market.”
“While no single measure can solve the housing crisis, this is one lever we can and should pull to offer relief.”
[Related: Senator Bragg unpacks housing inquiry reforms to brokers]
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