$3 billion in federal funding proposed to build 1.2 million homes, resolve housing crisis

The prime minister has issued a challenge to states and territories to boost the number of homes, offering a multibillion-dollar carrot to build new dwellings.

Anthony Albanese announced 1.2 million homes would be built in the next five years, an increase of 200,000 dwellings from the previous target, following talks with state and territory leaders at National Cabinet.

Jurisdictions will be offered $15,000 for each new home they build, from $3 billion in federal funding for 200,000 new dwellings to tackle the housing crisis.

The money from the federal government would then be able to be spent how states or territories choose.

“This is an initiative that shows how serious we are as state and territory governments across the political spectrum as well as the Commonwealth, understanding that supply is the key,” Albanese said.

The National Cabinet also agreed to a suite of rental reforms that involve moving to limit rent increases to once per year and implementing minimum rental standards.

The reforms include developing a nationwide policy to require genuine reasonable grounds for evictions.

The Greens had opposed the federal government’s $10 billion Housing Australia Future Fund over a lack of support to renters, delaying debate on the bill until October.

Despite the outcome from National Cabinet, Greens leader Adam Bandt said the plan did not go far enough.

“From now on, every unfair rent increase is Labor’s fault. Labor has every seat bar one at National Cabinet and it’s now clear Labor’s policy is for unlimited rent increases,” he said.

Opposition housing spokesman Michael Sukkar said the prime minister had failed to address issues in the sector.

“With no guaranteed investment in new housing stock, no concrete plan on increasing housing supply and nothing for first home buyers struggling to get into the market, it’s clear that the Albanese government has given up,” he said.

But the Property Council’s chief executive Mike Zorbas had welcomed the development.

“National Cabinet has taken a big-picture approach to housing supply improvements that, if successful, will boost access to housing for all Australians,” he said.

Maiy Azize, spokeswoman for housing organisation Everybody’s Home, said the meeting represented a lost outcome for renters.

“(The) agreement will not end unfair rent increases. Limiting increases to once a year won’t change anything for nine out of ten renters across the country, and has still seen rents spiral,” she said.

This article was first published by AAP.