An alarming number of welfare recipients are struggling to afford Broadmeadows rents, according to research published by the Tenants Union of Victoria.
The union’s Affordability Bulletin for March this year highlights the increasing scarcity of affordable housing options in traditionally inexpensive suburbs for Victorians receiving income support.
According to the union’s research, Broadmeadows rents increased during the previous quarter for all dwelling types, and six out of eight household types would remain in housing stress if paying the median rents.
An indicator of household stress is when a low-income household spends 30 per cent or more of weekly household income on rent.
In Broadmeadows, families of four on the minimum wage are spending an average of 35.9 per cent of their income on rent.
Singles living alone are spending between 44.8 per cent and 78 per cent of their incomes on median rent. For singles under 21 living on Newstart in a two-bedroom flat, as much as 51.4 per cent of their income is being spent on median rent.
The Tenants Union of Victoria is among a group of housing support agencies that spoke at last week’s Senate inquiry into affordable housing.
Union policy and liaison worker James Bennett said the report revealed inadequate levels of Commonwealth rent assistance.
“Rents are already too high for those receiving Newstart,” he said. “The combination of spending cuts and proposed changes to the welfare payment system mean the outlook for young people and families looking for work is increasingly precarious.”
Mr Bennett said rising housing costs consigned those living on welfare payments to living in outer suburbs, which often had poorer employment and transport options.
“Those in the government repeating the mantra of individual responsibility need to consider the impact these proposed reforms will have on the capacity of our low-income youth and families to access affordable, safe, appropriate housing.”
