Young Tasmanian tenants on low incomes require rent subsidies to deal with the state's private rental market, Shelter Tas says.
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The proposal is one of several contained in the body's submission to the upcoming state budget this month.
The housing body said young people were particularly disadvantaged in the state's competitive rental market due to lower incomes and discrimination from landlords.
It said young people were overrepresented in the specialist homelessness service system, and on the social housing waiting list, and proposed development of a rent subsidy model for them.
According to recent data from the Real Estate Institute of Tasmania, the rental asking price for a three-bedroom house in Launceston had gone up 21.2 per cent and by 13.3 per cent in the North-West.
This means a three-bedroom home in Launceston costs an average of $400 a week to rent and $340 in the North-West.
Surprisingly, a two-bedroom dwelling in Launceston costs on average $405 a week to rent.
Shelter Tasmania has again proposed the state government set a target for up to 10 per cent of dwellings to be affordable social rental homes in the medium term with an aim to delivering at least 1000 additional affordable homes annually.
"Affordable, appropriate and secure housing underpins our economy's ability to attract and retain a skilled workforce," it said in its budget submission.
"The shortage of affordable rental housing directly undermines our community's health, education and overall wellbeing."
The organisation has recommended a grant program be established for projects that demonstrated well-designed affordable shop top accommodation and use of vacant office space targeted at low income renters and social housing tenants.
Shelter Tas has recommended increasing and expanding crisis accommodation and longer term accommodation options for single men and for men with children in the North-West.
It acknowledged there were eight specific units included in the government's second Affordable Housing Action Plan, but said more of these places were needed.
"Funding needs to include capital expenditure and ongoing operational funding," it said.
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