The WA Government hopes to bolster the state’s stock of affordable rental housing. Photo: Western Australian Government.
The Western Australian Government has opened expressions of interest (EOIs) for its $75 million Build to Rent Kickstart Fund, delivering on an election commitment to bring more rental homes to the market.
Administered by Keystart, the fund aims to attract private sector investment in build-to-rent (BTR) developments in WA with concessional loans for such projects.
BTR projects are usually large-scale developments providing long-term housing options for tenants. The model is attracting major investment in eastern states, but the government says there is a significant growth opportunity in Western Australia.
“The Build to Rent Kickstarter Fund builds on our government’s strong commitment to working with industry to deliver more supply to the housing and rental markets,” Housing and Works Minister John Carey said.
“We’re already backing build-to-rent with major government-led developments underway at Pier Street and the site of the former Stirling Towers.”
The fund will support projects for up to a decade to boost project economics and enable BTR projects to get off the ground. Support will include:
- No-interest loans for 30 per cent of the cost of constructing new BTR developments, capped at $250,000 per dwelling, for up to three years;
- Low-interest loans for up to 30 per cent of asset value will be available for a further seven years following project completion.
To be eligible for funding, projects must have at least 40 new rental dwellings, and rentals are required to be offered for at least a decade.
Projects supported by the fund are also required to reserve 30 per cent of dwellings as affordable rental housing and rents must be capped at 25 per cent of gross income up to the Keystart income thresholds.
The government expects that hundreds of new long-term rentals will be delivered under this system. The move is complemented by the government’s boost to 75 per cent for the land tax exemption for BTR developments.
“Build-to-rent is a major opportunity to bring more rental stock onto the market in WA and help more Western Australians into an affordable home,” Treasurer Rita Saffioti said.
“Our Build to Rent Kickstart Fund will attract private sector investment into building more long-term rentals, boosting housing supply through low-cost finance.”
EOIs close on Monday, 8 December. More information is available here.
