Fed; Property boom demolishes cheap housing stocks

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Fed; Property boom demolishes cheap housing stocks

MELBOURNE, Feb 12 AAP - The property market boom has widened the gap between Australia'shaves and have-nots, according to a report by the Brotherhood of St Laurence.

Rising property prices have made affordable houses hard to find for those on lowerincomes or pensions, leading to an increase in "housing stress", and the need to sacrificebasic necessities just to survive, the report says.

Households are suffering from housing stress if more than 30 per cent of their incomegoes towards paying rent or a mortgage and that income is in the lowest 40 per cent.

Researcher Sally Jope said people were going without food, clothing and healthcareto keep a roof over their heads.

"People have told us they are paying up to 62 per cent of their incomes on housing,meaning they can't afford the medicines they need, the paediatrician's appointments theirkids need, or even food," Ms Jope said.

Brotherhood researchers found housing-related poverty had a bad effect on some people'shealth by slowly eroding their outlook through situations such as having to eliminateleisure activities which cost money.

People who found more affordable places to rent in outlying areas or regional centresfound jobs nearby were hard to come by or they needed to spend more money on travellingto work or to school.

Ms Jope said spending on public housing declined from $805 million to $725 million in 2002.

Since the 1980s, the building of public housing had fallen from 10,000 to 15,000 unitsa year to less that 5,000 units in the last couple of years before 2001.

The Brotherhood called for a concerted national housing plan that better channelledgovernment subsidies to people on low incomes.

The report also said private investment in affordable housing should be encouragedand more public housing built.

AAP ra/gfr/gl/de

KEYWORD: HOUSING