Lorne rental housing incentive pilot project

Lorne-Housing-Pilot-2.png

 

OUR ASK:
he Victorian Government fund and trial a rental incentive scheme in Lorne that encourages up to 20 properties to be made available for long-term rental to key workers for a minimum of 24 months.
Funding sought:
$200,000 for a two-year pilot program.
$260,000 for a three-year pilot program.

Download the brief(PDF, 961KB)

Lorne is experiencing a critical shortage of long-term rental housing, particularly for key workers who support essential services and local businesses. Despite strong demand for housing, rental availability remains extremely limited, while a significant proportion of residential properties are used for short-term accommodation. Rising land tax and holding costs are also contributing to the loss of existing long-term rental properties, further reducing housing options for local workers.

Council is advocating for a rental incentive pilot project that encourages property owners to make homes available for long-term rental to key workers for a minimum of 24 months.

Project Scope

The proposed pilot will:

  • Provide financial incentives for up to 20 property owners to offer homes as long-term rentals to key workers.
  • Offer grants of:
    • $10,000 for a two-year rental agreement.
    • $13,000 for a three-year rental agreement.
  • Require participating properties to remain available on the long-term rental market for a minimum of 24 months.
  • Create up to 20 additional long-term rental opportunities for local key workers.
  • Trial the approach in Lorne, with the potential to inform similar initiatives in other regional communities.

Benefits

  1. Increased Housing Supply for Key Workers
    The pilot will increase the availability of rental housing for essential workers, including teachers, police officers, ambulance staff, hospitality workers and retail employees.

  2. Improved Workforce Attraction and Retention

    Access to stable local housing will help businesses and essential services attract and retain employees, reducing workforce shortages.

  3. Stronger Local Economy

    A larger resident workforce will support local businesses, strengthen year-round economic activity and improve service delivery across the community.

  4. Retention of Long-Term Rental Stock

    The incentive scheme will help retain existing rental properties and encourage underutilised homes to enter the long-term rental market.

  5. Enhanced Community Wellbeing 
     Supporting key workers to live locally helps maintain vibrant, connected communities and improves access to essential services for residents.

Project Status

  • Rental market analysis completed.
  • Research undertaken on short-term rental accommodation trends and housing supply.
  • Proposed incentive model and funding requirements developed.
  • Pilot framework established and ready for Victorian Government consideration.
 
The Lorne Rental Housing Incentive Pilot Project is a practical and targeted response to the town's critical rental housing shortage. By encouraging property owners to commit homes to the long-term rental market, the program will support key workers, strengthen local businesses and essential services, and improve community sustainability. As a pilot initiative, it also provides an opportunity to test an innovative housing solution that could be expanded to other regional Victorian communities facing similar challenges.
Lorne-Housing-Pilot.png

Other advocacy priorities

 

Back to top