This report sets out the performance of the sector during a year of uncertainty and challenges due to the ongoing effects of the COVID-19 pandemic. For this fourteenth edition of this report, we looked at reporting from 40 registered community housing agencies (the sector) for the 2020‑21 financial year.
As at 30 June 2021, the sector owned $4.04 billion in housing assets, delivered rental housing services to 21,167 homes and employed 1,630 people. Despite operating expenses increasing to $347 million, the sector generated a net surplus of $214.7 million which will be reinvested in community housing in Victoria.
In November 2020, the Victorian Government announced the $5.3 billion Big Housing Build. The sector will deliver an estimated 9,000 dwellings of the overall target of 12,000 new social housing homes to be built. This recognises the strong partnership between government and the sector in delivering social housing in Victoria and the value proposition the sector brings in delivering growth at scale.
We have seen a 3.8% increase in tenancy units owned and under management, at a total of approximately 21,000 tenancy units at 30 June 2021. The asset value of properties owned increased by $0.33 billion to $4.04 billion, up 8.8% on the previous year. This growth will continue to exponentially increase over the coming years with delivery of the Big Housing Build.
The COVID-19 pandemic impacted the sector in many ways, requiring a shift to remote work, adjusting to temporary changes to rental and eviction requirements under tenancy laws, and implementing a range of preparedness measures impacting service delivery. These impacts were undoubtedly felt even more so by tenants, particularly during the Victorian Government’s Stage 4 restrictions which restricted our movement.
The sector is also faced with increasing financial pressures with rising debt levels to deliver growth, increased administrative costs, and impacts in the private market to deliver construction activities. Rental revenue has remained largely unchanged over the last two years, partly due to the temporary amendments to the Residential Tenancies Act 1997 (Vic) (RTA), which included a moratorium on rent increases from 29 March 2020 to 28 March 2021.
Despite these obstacles and challenges, the sector remained resilient and achieved strong performance results. In so doing, it demonstrated its commitment to serving the community through the provision of quality rental housing services while pursuing opportunities for growth to create more social housing.
Strong 2020‑21 performance results included:
- high levels of compliance across performance standards
- a decrease in evictions as a proportion of tenancy exits (3.1% in 2020‑21)
- high level of tenancies maintained (89.3% in 2020‑21)
- high resolution rates for complaints (93.5% in 2020‑21).
Between April 2021 and January 2022, five new housing providers were registered in Victoria, with several other registrations currently under consideration. These new registrations will continue to strengthen the diversity of the sector.
We look forward to continuing to work closely with the sector to promote better outcomes for tenants and prospective tenants in Victoria.
Sincerely
David Schreuder
Registrar of Housing Agencies
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