Victoria has lost more than 100 homes as part of their public housing register.
The state’s public housing register is grappling with a more than 100-home reduction in the space of a year during the “worst housing crisis in living memory”.
In the 2022-23 financial year, Homes Victoria had acquired 854 private properties to be used as part of their head leasing program, but from July 1, 2023 to April 2024, that number dropped to 747.
Homes Victoria leases private properties, otherwise known as “head leasing”, to assist in relocating renters during redevelopment programs, provide short-term transitional housing and supplement public housing.
RELATED: Calls for state government to ‘pick up the slack’ in social housing fund shortfall
Housing industry ‘deeply concerned’ by lack of initiatives to solve housing crisis
Single Aussie mums pushed out of rental market, housing crisis commission hears
Fluctuations in the number of head leased properties reflected decisions on the availability and suitability of homes that met the needs of renters and decisions made by landlords.
It comes after the state government said in their Victoria’s Housing Statement, released in September last year, that they’d lease units that hadn’t been sold or rented in new developments to boost their social housing.
As of March, about 58,460 people were on the state’s social housing list, according to Homes Victoria.
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 768 1024"%3E%3C/svg%3E)
Ms Toohey said the state government couldn’t rely on private landlords to supply social housing.
Community Housing Industry Association Victoria (CHIA Vic) chief executive Sarah Toohey said the state couldn’t rely on the private rental market to provide social housing to Victorians now and in the future.
“Head leasing from the private market is a short-term fix to a problem caused by long-term under investment in social housing,” Ms Toohey said.
“While the number of private rentals have dropped out of the government’s head leasing program, the not-for-profit community housing sector has been growing the number of social and affordable homes year on year.
“During the worst housing crisis in living memory, the Victorian Government must focus on delivering social and affordable housing at scale, in partnership with the not-for-profit organisations that have a proven track record.”
Ms Azize said with a shortfall of 146,000 social homes, the state and federal governments needed to step up.
Everybody’s Home spokesperson Maiy Azize said with a shortfall of 146,000 social homes in Victoria, state and federal governments needed to step up and deliver the social housing needed.
Council to Homeless Persons chief executive Deborah Di Natale said it was vital the government did everything possible to increase — not cut — the availability of public housing during a worsening homelessness crisis.
“Victoria must build its way out of this crisis with 6000 new public and community dwellings each year for the next decade,” Ms Di Natale.
Mr Caine said he knew that the government was intent on increasing their number of head leased properties.
Real Estate Institute of Victoria (REIV) president Jacob Caine said it was unfortunate that there’d been a decline in head leased properties.
“I can understand that the job for government in securing appropriate, safe rental properties from landlords can be quite challenging given the current supply constraints and given that a lot of investors are disinclined to rent to government bodies rather than to private renters,” Mr Caine said.
“That said, I know that the government is intent on building those numbers out.
“As new complexes and more supply becomes available, I’m sure that those numbers will reverse and increase.”
Samantha Kirkley is a rental provider and owns a property in Sunbury, which she’s leased out since 2021.
The 29-year old said when she listed her Sunbury home for lease, Homes Victoria was one of the first to approach her real estate agency and put in an offer without even inspecting the home.
“What they offered was a three-year lease which was attractive, a 5 per cent increase (each year), and rent permanently on time, but you’ve got zero control in who’s there,” she said.
“I found it uncomfortable because I want to help people but I don’t want to have my property destroyed either; you don’t know who’s going in.”
Ms Kirkley added that it seemed Homes Victoria was banking on the goodness in landlords offering up their properties, but many owners were risk averse.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Home hope: 10 interest rate cuts forecast in two years
Melbourne’s $555.1bn in mortgage-free homes unveiled
Melb home in beachside suburb sells for under $100k
sarah.petty@news.com.au