media release
25 October 2022
HESTA welcomes the Federal Government’s Housing Accord as an important first step towards removing long-term barriers to growing the supply of affordable and social housing.
HESTA CEO Debby Blakey said access to affordable housing near where they worked was critical for HESTA members’ long-term financial security and wellbeing.
“Access to housing is vitally important for our members and the health and community sector that deals with so many of the social issues that flow on from a lack of appropriate, secure housing.”
Ms Blakey said the lack of affordable housing represented a broader systemic issue for investors, with far-reaching societal and economic impacts.
“We know a lack of affordable housing is a drag on workforce productivity across the economy. A lack of secure housing also compounds the effects by negatively impacting health outcomes and reducing the ability of women and children to leave situations of family violence,” Ms Blakey said.
Through its impact investment program HESTA has sought opportunities to invest more in affordable and social housing, while achieving appropriate risk-adjusted returns for members.
Ms Blakey said the Housing Accord represented an opportunity to address well-known barriers by bringing all stakeholders together.
“There is no single solution to this housing crisis, but all levels of Government have a role to play,” Ms Blakey said.
”That’s why it’s fantastic to see this framework for all stakeholders to come together to overcome challenges because now is the time to get the policy settings right.”
Ms Blakey said HESTA was looking to invest more in affordable and social housing, but the key was to get the policy settings that created strong investment opportunities at scale.
“Australia’s superannuation system has incredible investment expertise they can bring to the table and we’re already seeing the industry develop a range of models that, if backed by strong partnership with government, can attract patient, long-term capital.”
“Large investors like HESTA will invest more if we can get policy settings in place that can help us achieve appropriate, long-term returns for members. Policy makers have an important role to catalyse investment through fostering innovative collaboration opportunities that we hope will emerge from this Accord process.”
Ms Blakey said HESTA looks forward to working with all stakeholders to further develop financing approaches that aim to create appropriately scaled opportunities with the necessary risk and return characteristics for investors seeking either debt or equity exposure.
“We want to work collaboratively to build a pipeline of investment opportunities that offer the long-term, stable returns that investors are seeking. The best way to do this is to create long-term, stable policy settings underpinned by strong partnerships across all levels of government and with the residential building and community housing sectors.”
Ends.