Opinion & Commentary
Indigenous people in NT deserve fair go at private homeownership
On the surface, the recent government decision to provide funding for new public housing to four troubled communities in the Northern Territory sounds like a good thing. Finally government appears to be doing something to address the appalling condition of public housing in remote areas. But should public housing be the only option for residents of these communities?
The Northern Land Council agreed last month to 40-year housing leases in four communities in the Northern Territory. Funding of $48.7 million has been provided for Maningrida; $33 million for Galiwin'ku; $28.7 million for Gunbalanya; and $48.7 million for Wadeye. This funding will help build around 300 new houses and refurbish 250 existing houses.
Building new public housing is something that governments have been doing for decades. Over the last 30 years, governments have sunk billions of dollars into new public housing with very little to show for it. Lack of maintenance has meant that few houses last more than 10 years before they become uninhabitable. The current pace of construction is unable to keep up with demand and has created a vicious cycle of unmet need.
In the Tiwi Islands, waiting lists for houses are so long that applicants are likely to die before receiving one. The waiting time for a house in the Tiwis is around 50 years, while the average life expectancy of a Tiwi man is only 48 years.
The repeated and prolonged failure of government attempts to improve housing conditions in remote Indigenous communities suggests that other options, such as private homeownership, deserve a trial.
But lack of private property rights on communal title land has prevented Aborigines and Torres Strait Islanders from becoming homeowners. Without individual title, banks will not provide financing for home loans.
To allow individual ‘ownership’ of land, the Howard government introduced 99-year leases. But this scheme proved unpopular because the government, not communities, held the leases. Aborigines and Torres Strait Islanders feared this was a ploy by government to take away their land, and only one community signed up to the scheme.
Rather than the government controlling the process, communities should hold the leases. Community leases could operate like company title, with eligibility rules and conditions for membership. This way, communities could feel secure that their land is still under their control and enjoy the benefits of private homeownership.
It is not at all clear how the Rudd government’s 40-year housing leases will lead to private homeownership. The leases are to establish secure title for new public housing. It could be that the Rudd government plans to extend the rent-to-buy scheme happening in Wadeye. But building two new homes in Wadeye costs the government nearly $900,000. At this outrageous price, public housing will have to be heavily subsidised if it is to be affordable.
The government has introduced generous subsidies – including zero percent interest – to help low income Indigenous families into homeownership. But what good are subsidised loans without access to land? The home loan assistance package has been around for three years, but so far only one loan has been granted.
Reselling public housing only makes sense for old derelict houses valued around $80,000. This may enable a lucky few to become homeowners, but it does not give them much choice about the types of houses they can buy. The purchase of publicly built houses should not be the only way for Indigenous families to acquire their own homes.
Many Aborigines and Torres Strait Islanders would like the chance to be homeowners. They want to be able to pass their homes on to their children and not be stuck paying rent their whole lives. Just like other Australians, they deserve a fair go at private homeownership.
Sara Hudson is a Policy Analyst at The Centre for Independent Studies. Her report From Rhetoric to Reality: Homeownership for Remote Indigenous Communities was released by CIS in March.
