Seniors groups and retirement living providers have backed calls from the Productivity Commission for federal and state governments to streamline planning processes to address the pressing shortage of age-friendly accommodation.
The Productivity Commission’s Housing Decisions of Older Australians report this week found that state and local planning systems created barriers to expansion and innovation in age-specific housing.
There was a lack of affordable downsizing options for older Australians, due in large part to the “red tape and inconsistencies” within state and territory land planning regimes, the report found.
“Operators of retirement villages and aged care services reported significant red tape in dealing with planning and development approvals, both for new facilities and for modification and redevelopment of existing outdated stock,” it said.
In its wide-reaching paper, the PC noted that 15 per cent of older Australians were renters, a group who were generally “highly vulnerable and economically disadvantaged.” It documented the numerous reviews that had provided evidence of the risks facing older renters – such as poverty, homelessness and reduced mental health and wellbeing.
The commission said that most older home owners on low incomes could achieve a “modest retirement living standard over the remainder of their lives” by drawing on their home equity. Among its numerous recommendations, the PC proposed greater government involvement in the home equity release market.
Urgent action needed
Council on the Ageing chief executive Ian Yates said urgent action was needed to increase the supply of innovative and affordable housing options for older people who do chose to ‘rightsize.’
The Federal Government needed to put measures in place that stimulated a more robust equity release market that encouraged retirees who chose to downsize or top up their pension by accessing equity in their homes, he said.
“There can be real value for many older Australians in using equity from their family home to provide them with a better standard of living as they age but it needs to be a real, financially viable option, that is easy to navigate, with robust consumer protections in place,” Mr Yates said.
Action was also needed to increase the supply of innovative and affordable housing options for older people, he said.
National Seniors also backed the PC’s recommendations around stimulating more age-appropriate housing stock.
“Policy makers must consider existing barriers to downsizing such as stamp duties and the lack of age-friendly, affordable housing stock,” said chief executive Michael O’Neill.
More work needed to be done on innovative but well-regulated products that would allow people to voluntarily draw equity from their home, should they want to, he said.
Planning roadblocks highlighted
The Retirement Living Council said the report had “shone a light” on the planning and policy roadblocks that must be removed to improve housing choices.
“The Productivity Commission’s research rightly identifies the need to reform state and territory planning systems to increase affordable downsizing options available to seniors,” said Mary Wood, executive director.
“Tightly targeted reform, like the one we have previously put forward, allowing eligible pensioners to choose the most age–‐appropriate accommodation and unlock the equity in their family home will benefit seniors and the broader economy,” she said.
Ms Wood said the PC’s finding that “an increasing proportion of older Australians are looking to move into homes that are more suitable to their needs” was consistent with an independent study commissioned by the Property Council that showed Australia’s current retirement village population of 184,000 residents was set to more than double to 382,000 in the next decade.
Related AAA coverage: Government communication on aged care reforms needs improvement: PC
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Here’s a fast track idea. Instead of sending billions of tax payers dollars overseas to help countries with their pollution, how about we keep the money here and use it to urgently build these houses. Not rocket science really and imagine the benefit to our economy to spend the money to create employment, build new communities etc.