High property prices in the UK show that Australia's housing affordability crisis is not related to negative gearing, Treasurer Scott Morrison told business leaders in Marylebone, in the UK.
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Scott Morrison didn’t need to go all the way to London to be impressed with a scheme that aims to create more affordable housing – the federal treasurer could have learned about it in Australia.
London mayor Sadiq Khan has launched a major effort to create more affordable homes to rent and buy in the UK capital.
That includes an “inclusionary zoning” mandate in developments that impressed Mr Morrison during his recent visit.
Treasurer Scott Morrison in London. Housing affordability will remain a key battleground for the Coalition and Labor this parliamentary term. Photo: Chris Ratcliffe
“In this country that really hasn’t been a big feature,” he told Ray Hadley on 2GB radio on Monday morning.
It could be useful in addressing the major challenge of helping key workers such as police officers, nurses, and teachers buy homes in locations “so they don’t have to travel two hours every end of the day to go and teach kids or look after people in hospitals or protect them on the streets”.
But three Australian governments already have similar mandates while another two are considering it.
The ACT since 2007 has required at least one in five properties in new developments be set aside for affordable housing.
It now has price caps on these affordable properties, ranging from one to two bedroom units or small townhouses at $296,000 up to three-bed units, townhouses or separate houses at $382,000.
South Australia and Western Australia both have a 15 per cent quota for homes in new developments being targeted at low- to moderate-income houses.
A 30-year infrastructure plan delivered to the Victorian government in December recommends using inclusionary zoning for developments on government land and areas where government work such as improved public transport access or rezoning boosts land values.
The Queensland government is working on a new housing affordability strategy, with a report on consultation over the past year noting inclusionary zoning was explored in depth.
AAP.