A new survey has revealed how single parents are sandwiched between a dwindling supply of rental property and rising rents, making finding a home hugely challenging.

The news underscores why the government recently announced a scheme for 10,000 single parents, allowing them to put down a deposit on a new home of just two per cent.
The normal deposit on a new home can be up to 20 per cent – meaning with soaring prices the deposit itself is deterring single parents from buying.

Asking rents have increased to a record high of $508 per week nationally. Over the last 30 days to August 12, rents had risen by 1.3%. The total increase over the last 12 months is 13.7%, so rents are increasing an average of 1.14% each month.

Across Australia there are only 61, 313 residential properties available. Vacancies in Melbourne have increased to 3.6% from 3.5% in June, but in Sydney vacancy rates have dropped from 2.8% to 2.7%. 

Survey company SQM said that the new lockdowns may have led to increased interest in regional living as many city slickers seek freedoms that they don’t currently have in capital cities.

SQM Research CEO, Louis Christopher said that current tight rental vacancy rates are driving up rents across Australia.

He added: “If lockdowns persist through to Summer it is likely many people living in Sydney and Melbourne may attempt to move elsewhere.”

Hardest hit are single parents.  Now Community First bank is offering the Family Home Guarantee Scheme introduced by the government earlier this year.

 Rather than the standard 20% deposit, single parents can pay a deposit of 2% without being subject to Lender’s Mortgage Insurance (LMI). LMI can cost $10,000 on a home valued at $500,000.

There are just 10,000 places left.  Apply: https://www.communityfirst.com.au/

Find out more

If you’re a first home buyer and would like to know more about the Family Home Guarantee or other financial supports available to you, talk to Community First fill out this form or call 1300 13 22 77.

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.  Community First Credit Union Limited ABN 80 087 649 938 AFSL/Australian credit licence 231204

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