Dozens of Ballarat families will face steep rent rises in 2023 as the government phases out a national assistance program for those on low and moderate incomes.
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The National Rental Affordability Scheme (NRAS) is coming to an end in 2026 and the number of allocated houses up for rent at at least 20 per cent below prevailing market rates is gradually being cut down to zero.
The latest NRAS Quarterly Performance Report, released in December 2022, revealed 64 NRAS homes will be lost across Ballarat and its suburbs in 2023.
By 2026, more than 200 homes will have exited the scheme: 50 in Alfredton; 4 in Ballarat; 2 in Ballarat East; 22 in Canadian; 7 in Delacombe; 1 in Lucas; 37 in Mitchell Park; 10 in Mount Pleasant; 3 in Mount Clear; 66 in Sebastopol; 18 in Warrenheip; and 14 in Wendouree.
The then federal Rudd government introduced the NRAS in 2008 to stimulate the supply of new affordable rental homes, using Commonwealth and state contributions to fund a National Rental Incentive for eligible applicants. The Abbott government axed the scheme under its 2014/15 budget.
Housing assistance provider Uniting says the scheme's end will "inevitably lead to more people being squeezed out of the rental market and an increase in the amount of people experiencing homelessness".
"As more properties are becoming unaffordable and out of reach, we're seeing a broadening in the demographic makeup of households reaching out for assistance," Uniting Vic.Tas homelessness senior manager Adam Liversage said.
"Having a stable income no longer guarantees a person's ability to afford to live."
Mr Liversage said Uniting had recently seen an increase in the number of people asking for help "because their rents are being increased by up to 20 per cent".
He said demand for assistance in Ballarat through Uniting's Private Rental Assistance Program (PRAP) - which supports individuals and families at risk of being evicted from a rental property - has been "exceptionally high".
For those already struggling, the removal of "crucial" policies such as the NRAS "only further pushes people into poverty, while the lack of adequate funding for programs such as PRAP are pushing even more households towards poverty," Mr Liversage said.
The state government has pledged $50 million to build social housing at Delacombe, but is yet to demolish existing houses to make way for the development.
Demolition tenders are expected to be released in coming weeks.
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