More than 13,700 new social and affordable homes will be constructed with federal government funding in what is said to be the biggest social housing investment in more than a decade. 

The new homes will go to vulnerable groups including women and children escaping domestic violence and older women at risk of homelessness. 

The first round of the federal government’s Housing Australia Future Fund (HAFF) will give funding to construct 4,220 social and 9,522 affordable homes. 

It comes as the HAFF and the National Housing Accord Facility plan to give funding to build 40,000 social and affordable homes over five years.  

“The Commonwealth government is back in the game of delivering social and affordable houses at scale, working with all levels of government and the community housing sector to deliver the biggest investment in social housing in over a decade,” federal housing and homelessness minister Clare O’Neil said. 

“We want to reduce the stress of housing for Australians – the long waits on housing lists, the long queues for rentals, the out of reach deposit for first-home buyers – we’ll reduce these issues if we build more houses, and that’s what these projects do.”  

Under the first round, the government's housing authority Housing Australia has recommended contract negotiations for 185 projects, with construction on almost 40% of the dwellings forecast to start this financial year.  

The HAFF and the National Housing Accord Facility plan to provide funding to build 40,000 new social and affordable homes over five years. Picture: Getty

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More than 1,260 of the approved homes will be allocated to women and children escaping domestic violence and older women at risk of homelessness. 

The funding round will unlock $9.2 billion of investment in social and affordable housing across Commonwealth, state and territory governments, and the private and community housing sectors, the federal government said.  

PropTrack senior economist Paul Ryan said the move was good news on two fronts.  

“It’s important that government is funding and building homes at a time when the private sector is finding that very difficult,” he said. 

Federal housing and homelessness minister Clare O’Neil said the government was back in the game of delivering social and affordable houses at scale. Picture: Facebook

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“It’s also providing homes for lower-income Australians who are finding the current housing market – both to buy and to rent – very challenging. 

“So it's unlocking housing supply at a time when it’s desperately needed and providing housing for the groups of Australians who are finding the current housing market the toughest.”  

The announcement has been widely welcomed by the property industry, drawing support from the Community Housing Industry Association (CHIA), Housing Industry Association (HIA), Property Council and other industry groups.  

CHIA chief executive Wendy Hayhurst said it was heartening to see the federal government taking decisive action to address Australia's housing crisis.  

“Of course, it doesn't fix the problem overnight, and no one would suggest it does,” Ms Hayhurst said.  

“When you're tackling a housing crisis that has been decades in the making, the key is to show long-term commitment and to steadily make inroads. 

“Thankfully, with the HAFF beginning to bear fruit, and with both Housing Australia and the Housing Supply Council now firing on all cylinders, we now have the necessary mechanisms and institutions to properly begin the mammoth task of turning our housing system around.”  

However, the announcement did attract some criticism.  

The Coalition pushed back on the federal government’s claim that it had done more to support social and affordable housing in the HAFF’s first funding round than the previous government had done in its nine years in office. 

PropTrack senior economist Paul Ryan said the new funding was unlocking housing supply at a time when it was desperately needed.

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Federal opposition deputy leader Sussan Ley blamed the federal government for the lack of builders and skilled tradespeople available to construct the homes that the country needs. 

“Those decisions will make it harder to build the housing projects funded today as well,” Ms Ley said. 

It comes as the federal government’s Housing Accord aims to see 1.2 million new, well-located homes built nationally by mid-2029. 

However, property experts are wary that the goal will succeed due to Australia’s struggling home building industry and other factors.  

The HAFF’s second funding round will open during the next six months.