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WA rental supply to be boosted by BTR scheme
The introduction of a new build-to-rent scheme by the Western Australian government will stimulate large-scale developments and improve rental supply.
The new Western Australia (WA) Build to Rent Kickstart Fund has launched, aiming to grow the state's rental pipeline by providing eligible investors with low- and no-interest loans, ensuring more projects have the necessary assets to begin construction.
To be eligible for access to the Fund, projects must provide at least 40 new rentals, which must remain rental dwellings for at least 10 years.
The scheme also requires developers to reserve 30 per cent of the available dwellings for affordable rental housing.
As part of the Build to Rent (BTR) scheme, eligible investors can access no-interest loans for 30 per cent of the construction cost of new developments, up to $250,000 per new dwelling, for up to three years.
Additionally, a low-interest loan can be obtained for up to 30 per cent of the asset's value for a further seven years.
The Fund was announced as part of the state budget earlier this year, along with the introduction of a shared equity scheme, to boost rental options across the state, both under the Keystart lender.
WA Treasurer Rita Saffioti said the changes would provide a timely boost for the state’s tight rental market.
"Our Build to Rent Kickstart Fund will attract private sector investment into building more long-term rentals, boosting housing supply through low-cost finance,” Saffioti said.
"Build to Rent is a major opportunity to bring more rental stock onto the market in WA, and help more Western Australians into an affordable home.”
BTR schemes have proven popular across Australia’s eastern states, with Victoria, NSW and Queensland leading the way in BTR construction, and WA has followed suit to capitalise on investor interest.
WA Housing and Works Minister John Carey said the introduction of the new scheme formed part of the government's larger commitment to delivering affordable housing.
"This fund is about spurring on private sector investment in the sector to accelerate the supply of rentals, complementing our government's record spend on housing measures," Carey concluded.