A shared equity scheme could help break the cycle of insecure renting for single parents

A shared equity scheme, specifically targeted at single parents, is already being pursued by Melbourne based charity Ys Housing. It has just been given approval to build its first nine homes in the Melbourne suburb of Reservoir to help transition single mums out of social housing.

It is modelled on similar schemes in Western Australia and Victoria, which was praised by the prime minister, Scott Morrison, when he was treasurer in 2017.

The Coalition has expanded its Home Guarantee scheme to 50,000 places annually, with 5,000 spots targeted to single parents with incomes up to $125,000 who can buy a home with only a 2% deposit and have lenders mortgage insurance waived.

Financial experts have flagged that entering the property market with a 2% to 5% deposit is risky as mortgage rates rise.

Julia*, a single mum renting in an outer suburb in Melbourne, says she has lived in three different rentals in the past three years, and has been on the waiting list for social housing since 2019.

Julia is considering moving to a rural area where homes are cheaper, but that means leaving her job and support network.

McLennan says he thinks the stacking cost of living single parents face when moving further away and into lower standard housing is often lost in the debate, but it is driving how Ys Housing set up their scheme, as is the need to build new housing stock so as not to push up housing prices.

* Names have been changed