State Labor has welcomed the $50 million dollar investment into social housing from the Commonwealth government saying that wait lists for housing have increased since the Liberals came into office a decade ago.
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Shadow Minister for Housing Ella Haddad said that more than 4,500 Tasmanians were waiting nearly 80 weeks on average to find a home.
The funding "will help to get more homes built for people in need - something the Liberal State Government has consistently failed to do," Ms Haddad said.
"When the state Liberals first came to office 10 years ago in Tasmania, there were fewer than 2,200 people on the list for a home, waiting on average 21 weeks. Wait lists have since doubled, and wait times have quadrupled."
Ms Haddad said a future Labor government would regulate the short stay market to prevent the loss of any more rental housing and would expand the MyHome scheme to enable Tasmanians to buy a home with a 2 per cent deposit.
Greens Leader Cassy O'Connor said that the funding could relieve some pressure if it was rolled quickly to deliver more public and affordable housing.
"Parliament's 2020 housing inquiry found there's an immediate shortage of around 11 000 homes, so there's huge unmet need," she said.
The Housing Australia Future Fund bill has been blocked in the Senate by the Greens who have called for more spending and rent controls.
Ms O'Connor said she supported her federal counterparts.
"It was Greens' pressure that delivered the extra $2 billion yesterday," she said.
"The Prime Minister is being dishonest and churlish in pretending it had nothing to do with the Greens. Labor can't get its inadequate housing legislation through without the Greens.
"We'll continue to keep the pressure on to give relief to renters. They're really struggling and it's driving households into poverty while property investors get massive tax breaks."
The Greens Leader also called on the Rockliff government to provide more short-term relief by reigning in rent increases and short stay accommodation.
"It should also place a levy on homes left vacant for a long time. Making sure Tasmanians have homes, not more stadiums, should be a core government priority," she said.
Tenants' Union of Tasmania principal solicitor Ben Bartl welcomed the announcement but said the $50 million that Tasmania would receive is in addition to the State Government's own commitment to build 10,000 new social and affordable homes by 2032.
"It is critical that the money is not subsumed into already promised social housing commitments by the State Government."
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