NSW homes minister nods to regional ‘market failure’

During a NSW budget estimates hearing last week, Anthony Roberts, the state’s Minister for Planning and Homes, reported his department has begun to switch its focus to regional NSW on the issue of housing supply.

He hinted that there will be a regional housing strategy to come “very shortly”, involving the state’s Department of Planning, local councils, non-profits and private enterprises. The state’s land and property development group, Landcom, is also involved.

“There is a shortage of housing, quite frankly, in regional NSW – all housing. It is dramatic. There is market failure, and we have seen that,” Mr Roberts said.

“So we are pivoting as a department, and I have made it quite clear to the secretary and, in fact, to regional councils that we are moving our focus and we are working together with Landcom, with housing providers, and together as a cluster – that is why it is Planning and Homes – together with Crown Lands to develop a number of programs such as what we did down in Cooma, working with Aboriginal land councils to start delivering more homes rapidly to regional New South Wales.”

The NSW government’s affordable and social housing body Land and Housing Corporation (LAHC) has recently signed a memorandum of understanding (MoU) with Crown Lands, which is responsible for managing state-owned land.

Under the agreement, the two bodies have aimed to identify where state-owned land might be better used for housing in regional NSW.

So far, the program has delivered 140 housing lots in Cooma during the first phase of its strategy, working with the local Aboriginal local council to unlock land.

The housing lots will be used for around 200 homes.

While some of the land will be used for social housing, Mr Roberts commented, there will be an opportunity for the market to purchase some lots and build homes.

There will be a further second phase, which will include a mixture of homes, social housing, Indigenous housing and affordable housing.

In December, the National Housing Finance and Investment Corporation (NHFIC) also revealed that it was exploring potential housing supply solutions across NSW, with Landcom.

The pair said they would work together to accelerate new housing supply across regional and metropolitan areas, as well as develop deal parameters for a pilot social and affordable housing program.

Mr Roberts was also grilled on the state government’s response to the recent flooding in northern NSW.

The secretary of the Department of Planning and Environment will commence an independent review in the coming weeks on planning in flood-prone areas and relevant policy and programs.

[Related: Westpac extends partnership with housing deposit not-for-profit]