Has the Reserve Bank and the Liberal Government conspired to caused high rents make families homeless?

With the RBA delivering 6 rate increases, it has to take part of the blame for the current housing shortage, especially rental property, which became unattractive with the cost of financing due to these mortgage rate increases on top of GST costs. As a result Australian's that have missed the prosperity boom are facing the prospect of homelessness, says the St Vincent de Paul Society.
A report by the society says that over the past five years there has been a 30 per cent increase in the number of families with children needing assistance from homelessness services across Australia.
It says the pressure on the services "has never been greater'', mainly due to the desperate state of the private rental market.
About half of the families seeking help had rented their homes from private landlords, even though private renters make up only 23 per cent of Australian households.
The report says the focus of housing affordability has too long been on ownership, while the plight of low-income renters has been ignored.
"It's time proper attention was paid to the private rental market and decisive action was taken to improve access to affordable housing for low-income private renters living under sometimes crushing financial pressure,'' the report says.
It also says that half of all low income households in the private rental market are in housing stress, meaning they pay more than 30 per cent of their income in rent, and a third of those are in housing crisis, meaning they pay more than 50 per cent of their income in rent.
St Vinnies is calling for a direct $1.33 billion investment in low-income housing by the federal government to address the current crisis.
"We believe that the answer lies in switching the thrust of government policy to supply-side measures, namely, direct investment to increase the supply of the very best form of housing for low-income families - public and social housing,'' the report says.
St Vinnies also wants the issue to be at the top of the agenda at the next Council of Australian Governments (COAG) meeting.
The report says the rental crisis is having a devastating impact on children.
"Most of the children in homeless assistance services are under 12 years of age - a crucial period of their development - and homelessness has a serious impact on their health, education and well-being, often causing high rates of anxiety, emotional and behavioural problems and mental illness,'' the report says. Source: AAP

Brisbane's investment property shortgage means fewer vacancies, and soaring rents

Brisbane rental market is reaching crisis point, with new figures revealing fewer vacancies and rent rises of more than $100 per week.
Rents across the city have jumped 50 per cent in five years and reports of prospective tenants bidding for their rental properties have increased.
The Residential Tenancy Authority figures revealed inner-city and Fortitude Valley area rents spiked 38 per cent from $275 in June 2002 to $380 in June 2007.
South Brisbane rents rose from $210 to $310 in five years.
Queensland University of Technology president Daniel Doran said a ‘‘massive amount’’ of students had complained of having to bid for rent to secure a dwelling.
‘‘This doesn’t help students with already high levels of HECS debt, and as a result we’ve noticed a rise in emergency food vouchers,’’ he said.
Raine & Horne principal Darren Dollimore said young adults, particularly students living in inner-city areas, were being hit hardest, with rates rising $10-$60 every three months.
Housing Minister Robert Schwarten said escalating rents and a shortage of properties meant rent-bidding was a concern.
A report released today by industry analyst BIS Shrapnel said the demand for 44,000 new houses last year had not been met, with only 39,000 being built.
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