Rental affordability snapshot paints bleak picture for pensioners

If you’re a pensioner who rents a home, then you know just how tough it can be to find somewhere affordable to live.

There have been many reports released and comments made in the lead up to the Federal Budget about the issue of affordable housing for older Australians.

But the latest has blown the lid on the issue, revealing some very bleak figures for pensioners who rent.

The Anglicare Australia Rental Affordability Snapshot, released on Thursday, shows the extent of the rental affordability issue for retirees.

The snapshot shows that a couple on the age  pension can only afford 4.28% of the more than 67,000 rental properties surveyed.

It’s worse for a single pensioner, who could only afford 1.62% of the rental properties. However, the snapshot also states that figure could be less, given the number of properties that are shared accommodation and the reluctance of many older people to rent a room.

“For our most vulnerable – for older people renting on their own, people living with disability, women escaping violence, young people just making their way, and people living with mental health concerns – the barriers to obtaining affordable and appropriate accommodation can be insurmountable,” the snapshot reads.

“Rental stress is further compounded by insufficient tenants’ rights in many parts of the country, which see people living in dangerously run-down accommodation because they are too scared the landlord will raise the rent or evict them if they ask for basic repairs; evicted without cause and forced to move so their kids too have to move schools and vital community connection is lost; and refused the simple joy of the companionship of pets.”

The snapshot is being heralded as another call to action for the government on the issue of rental affordability, and with the budget just a week away, seniors groups and care organisations are mounting pressure on the government.

Council on the Ageing Australia chief executive Ian Yates highlighted that homelessness was an increasing issue for older Australians, and that the upcoming budget was a great opportunity to tackle the issue “head-on”.

“People are being forced to make choices between paying their rent, buying groceries and accessing crucial medical supplies. The situation is unacceptable in modern Australia.” he said.

“The gap between rental costs and income support is growing and it is becoming harder and harder for older people to maintain even a basic standard of living. ”

Yates said it was time for the Federal and State governments to address “market failure in the private rental market” and invest in housing for people on low incomes.

“Increasing social and community housing and increasing the overall supply of affordable and appropriate housing are essential parts of the answer,” he said.

 “COTA and many other advocates have also consistently called for an increase in Commonwealth Rent Assistance and an increase in the Newstart Allowance to make it a feasible income for a person to live on.

“Tens of thousands of jobseekers over the age of 50 face daunting odds against getting back into the job market due to age discrimination and then struggle to make ends meet on the Newstart allowance.”

Aged and Community Services Australia has also weighed into the debate, describing affordable housing for older Australians as “a challenge we must meet”.

 “It is concerning to see the number of older people living in non-stable and unaffordable private rental housing – in particular the increasing numbers of older women,” acting CEO Darren Mathewson said.

“Retirement housing benefits the Government and the community by meeting the pressing accommodation needs of an ageing population and enables ageing in place reducing admissions to both hospital and residential aged care.

 “Secure and affordable housing is required to receive support in the home and prevent premature admission to residential aged care.”

Anglicare have also put forward a list of recommendations for the government along with their snapshot, including:

• Establish an independent commission to set indexed and adequate government income support that takes account of people’s differing circumstances.
• Increase and amend Commonwealth Rent Assistance to ensure it reflects rent levels in different markets.
• Implement a national renter’s rights plan that delivers consistent and fair renting conditions for all Australians.
• Fund co-designed community housing options that ensure affordable and appropriate homes that fit everyone’s needs.
• Wind back negative gearing and capital gains tax exemptions, and redirect funds saved into public and community housing.

What do you think? Are you shocked by the findings in the snapshot? What is the solution?