Govt housing policy—more of same

Press, 4 August 1987, Page 3

Govt housing policy —more of same

Political reporter Labour has affirmed its commitment to the State playing an active role in providing mortgage finance and rental housing for low income earners. The Minister of Housing, Mr Goff, released his party’s policy yesterday — a policy which promised more of the same rather than a new direction. But Mr Goff drew a contrast between his policy and that of National which said that private lending institutions, not the Housing Corporation, should be responsible for lending, although the corporation could provide an interest rate subsidy or a mortgage guarantee. National has also promised to change the Residential Tenancy Act, to ensure the State did not interfere in landlordtenant relations.

Mr Goff said yesterday that to pull the corporation out of home finance lending would be a disaster for low-income families. Some private lending institutions were loath to move into the cheaper home lending market, even with the subsidy,.as

low-income earners lacked the assets to borrow. This would deny home ownership to many families, and place pressure on the rental market. National’s plan to “gut” the Residential Tenancy Act was “a reactionary policy and a response to a small group of landlord opinion unrepresentative of the majority." Mr Goff said the equitysharing, sweat equity, homestart, and multiplyowned land lending contract programmes had proved themselves and would be expanded. Under National, however, these policies would end as the corporation withdrew from home lending, he said. Labour would also investigate the concept of shared ownership — partrental and part-purchase — and push ahead with pilot co-operative housing ventures.

The granny flat scheme for the elderly would also be expanded with direct assistance from the corporation and local authorities. The policy said that priority for home finance assistance would continue to be given to modest income families buying their first home. Loan levels would be adjusted to ultimately

achieve single mortgages for all lower income families. Home improvement loans up to $20,000 would be made to low-income families for house extensions or modernisation where the work was essential. Interest rates would be income-related with subsidies withdrawn as the financial position rose, but interest rates would not rise if they pushed outgo-

ings on the house over 25 per cent of gross household income. Mr Goff said that beneficiaries would receive assistance only in proportion to their need and for the time of their need, out of fairness to the taxpayer and those on corporation waiting lists. The housing policy was launched at the School of Architecture of Victoria University.