Image – Canva.
  • Individual grants of up to $10,000 each to be available
  • Program opens 30 June 2021
  • More details available through local councils

Tasmania will be opening a new round of grants tomorrow at 3:00pm (30 June 2021).

The Ancillary Dwellings Grant Program is what the Tasmanian Government said is another step towards increasing housing supply.

Going towards what is more commonly known as granny flats, the $2.5 million program claims to be addressing the surge in demand for rental properties.

The Property Council Tasmania’s Executive Director, Rebecca Ellston, said it is a welcome move “away from inefficient planning pathways, towards deemed approval for appropriate developments.”

Ms Ellston added that it is crucial the plan is well implemented.

“If poorly and inconsistently applied it could mean a potential loss of amenity in our suburbs, which are already under pressure from reasonably high density controls.

“This has the potential to undermine progress in the urban renewal within the city, the Hobart Glenorchy corridor and in the existing greenfield areas.”

Rebecca Ellston, Property Council Tasmania Executive Director

Grant details

Each grant will be up to $10,000, made available to the first 250 eligible applicants.

Further details can be found in the soon to be released Adding Extra Living Quarters to Your Home brochure, which will be made available online or through your local council.

“I encourage homeowners to contact your local council to see what’s possible in your area and to be part of our community saying ‘Yes, in my backyard’.”

Michael Ferguson, Minister for State Development, Construction and Housing

The rental market

Finding a place in Hobart has been challenging for some time, it seems.

The vacancy rate for the state capital has been below 1% for the past few years, back in 2018, it dipped to as low as 0.3% according to SQM Research – still higher than the rates during the pandemic at 0.5%.

Vacancy rates for Hobart

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

Launceston on the other hand had a marginally looser market. During the pandemic, vacancy rates were floating around 1%.

Vacancy rates for Launceston

[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]

Ms Ellston said there is much to be done.

“… we will need more of all types of housing… as well as more efficient planning and approval processes, if we want to avoid continuing down the path of other capital cities like Sydney to eyewatering levels of unaffordability.”

Rebecca Ellston, Property Council Tasmania Executive Director

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