Rental stress creeping into Launceston and regions as Job Seekers spent 59 per cent of income on rent

TasCOSS are calling for a cap on annual rent increases to CPI until the vacancy rate reaches 3 per cent, while Shelter Tasmania wants limits on short-stay accommodation.

The Rental Affordability Index report by SGC Economics and Planning found that more groups in the community are becoming vulnerable to rental stress, which is where 30 per cent of a household's income, or more, is being spent on rent.

It found affordability had dropped in most parts of regional Tasmania, where Launceston, Kings Meadows and Perth now have unaffordable rents.

According to the report, single part time worker parents living in regional Tasmania are paying 41 per cent of their income on rent, single pensioners are forking out 35 per cent of their income, couple pensioners are paying 31 per cent, while individuals on job-seeker are paying 59 per cent of their income to keep a roof over their heads.

Single income families with kids are paying up to 18 per cent of their income on rent and dual income families are paying 11 per cent on rent.

Students living in sharehouses are creeping closer to rental stress paying 25 per cent of their income on rent, as are hospitality workers paying close to 20 per cent, and minimum wage couples are paying 21 per cent.

The report states that these groups now edge into the low income at risk thresholds where rental stress may affect their ability to pay for food, power and water, health services and medications, power, transport, education, household goods and debt repayments.

It found Hobart was the least affordable rental city in Australia, while in Burnie and Tomahawk rental affordability had shifted from acceptable to moderately unaffordable in the past year.

TasCOSS chief executive Adrienne Picone said short and medium-term housing measures were needed to improve outcomes for Tasmanians.

"One immediate measure the Tasmanian Government could take to assist renters to stay in the private market is to cap annual rent increases to CPI until rental vacancy rates reach 3% as well as introduce an empty homes levy," she said.

"Empty homes levies in other parts of the world have been shown to significantly boost the supply of rental properties. In such a tight rental market, every new available home counts."

Housing Minister Guy Barnett said the state's Private Rental Incentives Program was assisting the rental issue, capping private rents at 25 to 30 per cent below regional median rates in in some instances.

"Under the PRI program, property owners are invited to make their homes available for affordable rent to households on low incomes and who have low or no support needs," he said.

"In return, property owners receive an incentive payment of up to $9,900 per property per annum. Tenancy and property management is provided on behalf of the property owner by experienced community housing provider Centacare Evolve Housing. Property owners are guaranteed rent for a two-year lease."

Mr Barnett said the government has made the single largest housing investment in the State's history.

He said the new authority Homes Tasmania will begin operation on Thursday with the aim of building more homes faster for vulnerable Tasmanians."

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