Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Market uncertainties stunting investment in disability housing

The disability housing sector is struggling to secure sufficient finance, with investors perceiving the market as “highly uncertain”, new research has found.

A study, commissioned by the Australian Housing and Urban Research Institute (AHURI) and conducted by the University of South Australia (UniSA) and the University of Tasmania, has found that limited access to information about the disability housing sector has hindered investment opportunities.

According to AHURI, the Specialist Disability Accommodation (SDA) program, designed to increase housing for people with disability, has encountered financing difficulties because the market has been perceived as being “highly uncertain”.

“We interviewed people in major Australian banks, specialised finance providers, large property developers, community housing providers and consultants working across the industry and found a number of risks and issues that restricted their involvement with SDA,” lead researcher at UniSA Professor Andrew Beer said.

“These risks included a lack of high-quality data on both the current supply of dwellings and the number of NDIS (National Disability Insurance Scheme) packages being approved, as well as concern about whether the government would guarantee the long-term funding of SDA into the future.”

Advertisement
Advertisement

PROMOTED FEATURES


Respondents also observed that the specialised nature of disability housing, as well as the eligibility of tenants, makes it difficult to price and hence difficult to value.

Professor Beer urged the government to take responsibility for the growth and development of the disability housing sector.  

“The most effective solution would be for government agencies, including the National Disability Insurance Agency, to take on a stewardship role and actively work to shape the emerging SDA market,” Professor Beer said.

“Government needs to create the conditions that make all the elements of SDA both possible and available to those Australians living with disability who are eligible.”

Other solutions identified by the research include the need to organise and distribute information across the sector, with key information around demand and supply.

Also flagged as a potential solution are: the provision of templates and assessment tools to planners in order to clarify and streamline decision-making, and greater clarity surrounding roles and responsibilities of stakeholders, including the collection of data and how to facilitate flexibility when clients’ needs and desires change over time.

[Related: NDIS housing opportunity flagged for investors]

Market uncertainties stunting investment in disability housing
Suburbs
mortgagebusiness

Latest News

Record low mortgage rates and a “less severe recession than feared” are set to pave the way for a V-shaped recovery in residential prope...

Bluestone has announced it will resume lending to some of the industries hardest hit by COVID-19, following a six-month hiatus. ...

Banking and finance has been named as one of the sectors with the highest monthly job ad growth, but job ads overall have fallen by almost ...

FROM THE WEB
podcast

LATEST PODCAST: The beginning of the end of deferrals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.