Home Time: Children and young people locked out of housing options by 'perverse' youth housing penalty

New research reveals systemic financial barriers 

New research from the University of New South Wales (UNSW) commissioned by the Home Time Youth Housing Coalition has revealed the full extent of systemic financial barriers preventing 16–24-year-olds experiencing homelessness from accessing safe housing options around Australia.

Dubbed the ‘youth housing penalty’, these barriers discourage community housing providers from offering tenancies to unaccompanied young people without a home.

Providers stand to lose 46% of the possible rental income if they choose a young person over an adult on a higher social security payment.

This youth housing penalty is one of the factors behind the low rate of social tenancies being offered to young people, currently less than 3%. Despite this low number, almost 40,000 16–24-year-olds are alone and homeless each year, actively seeking homelessness and housing assistance.

Recent changes by the Federal Government to Commonwealth Rent Assistance have also left many young people experiencing homelessness worse off due to the formula used. Lead author of the research, Dr Ryan van den Nouwelant, said the youth housing penalty is a result of mismatched policy settings.

“Young people experiencing homelessness are often a priority in terms of allocations to community housing, but social security and social rent setting policies create financial barriers to housing this group. Modest changes to current policy settings can remove these barriers and improve the capacity of the community housing sector to support vulnerable young people.”

“Reform options include targeted subsidies to equalise rents with older tenants, increased Commonwealth Rent Assistance for young people experiencing homelessness, and factoring in lower rental income when housing proposals are considered by the Federal Government.”

MCM Head of Policy, Advocacy and Government Relations Shorna Moore said UNSW’s research reflected the reality for children and young people without anywhere to live. “We support thousands of children and young people who are alone, homeless and have nowhere else to go. Penalising community housing providers for offering safe homes to vulnerable young people is a truly perverse outcome of the current system.”

“Services like ours are focused on supporting children and young people to get out of danger and find a safe place to rebuild their lives after trauma and homelessness. Instead of putting up barriers, we should be creating pathways so young people can find home and hope again.”

Community Housing Industry Association CEO Wendy Hayhurst said that community housing organisations want to be in a position to provide homes to a lot more young people. ‘We know that a stable, secure, safe and affordable home is the foundation young people need to thrive. So, we urgently need to overcome the structural issues that make it much harder to make housing for young people financially viable.

The youth housing initiative - a part of the National Housing Infrastructure Facility - is a great start. This research offers some cost-effective options to open up many more options for young people.’ Homelessness Australia CEO Kate Colvin said stronger national action was needed. “As we head into an election, we need strong commitments from all sides of politics to fix youth housing. Every homeless young person who can’t return home needs safe housing and support.”

“The Home Time Youth Housing Coalition of over 160 organisations, is calling for 15,000 dedicated tenancies with support for young people nationally and action to remove the youth housing penalty from Australia’s housing system. Without action, nothing will change.”

The Federal Housing and Homelessness Minister, The Hon Clare O’Neil MP will speak at the launch of this research at Parliament House at 4pm Tuesday 26 November, alongside frontline service providers, peak bodies, and young people who have lived and living experience of homelessness and the youth housing penalty.

Background information

Data released earlier this year revealed that almost 40,000 young people had approached homelessness services for assistance with almost 10,000 aged 15-17 with nowhere to live and no parental or carer support.

Most troubling was the fact 44% were still homeless after receiving assistance due to a lack of dedicated youth housing. Two recent national polls have found deep concern about housing and homelessness for young Australians, with 84% of respondents worried about affordability and 91% concerned about the number of young people without a home.

Home Time is supported by over 160 organisations, including Homelessness Australia, Community Housing Industry Association, National Shelter, Melbourne City Mission, Australian Youth Affairs Coalition, ACOSS, The Salvation Army, Anglicare Australia, Brisbane Youth Service, Mission Australia, Foyer Foundation, YFoundations and the Australian Services Union.

Read the full report 

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