Voicing our concerns
The industry was alarmed by last week’s surprise announcement that the Federal Government intends to ban managed investment trusts from investing in residential property (except for affordable housing).
The practical effect of this announcement is that it would – if enacted – kill off build to rent in Australia before it can take hold.
Since Thursday, we have met with senior figures in the government to voice our concerns, with further meetings to come. With the draft legislation out for comment for just two weeks, we have also begun developing an industry submission. Members are also encouraged to make their own representations.
In our discussions and public comments we are emphasising the big potential benefits for Australia of a healthy build to rent sector.
Build to rent provides diversity of choice and a quality experience for people who rent. It provides a much needed source of additional housing supply that can be counter-cyclical to normal construction cycles.
And a healthy at-market build to rent sector is the best potential partner for governments looking to incentivise affordable rental housing in our cities.
For all these reasons and more, it makes sense for Australia to be able to follow in the footsteps of the US, UK and other countries in creating this new form of housing supply. We will continue to keep members informed of developments.