slumlords are a symptom of an ailing system

http://www.theage.com.au/opinion/editorial/slumlords-are-a-symptom-of-an-ailing-system-20090620-crwu.html?page=-1

IN THE June quarter, Victoria's public housing waiting list grew again — by 1120 households — bringing the number of applicants to 38,980. This is the number of people who are in accommodation they struggle to afford, or that is substandard, and who don't envisage an improvement in their circumstances. Ideally, public housing is a safety net for those who cannot afford to buy their own home or who have been priced out of the private rental market. But years of under-investment in public housing by state and federal governments, combined with rising house prices and a rental shortage, have caused the waiting list to swell. It has become a form of purgatory for the most disadvantaged: the long-term unemployed, pensioners and the chronically ill. Unfortunately, not everyone who is eligible joins the list — because of the length of the wait or because they do not want to live on a public housing estate. Earlier this year, the Federal Government announced its intention to provide more than 20,000 new public housing dwellings at a cost of $6.4 billion; about 5000 will be built in Victoria. Yet this significant investment, which was hailed as the largest in public housing in Australia for at least 25 years, will only partially solve the nation's housing problem.

One person's crisis is another person's business opportunity. The slumlords have seized their chance and stepped into the rooming house market, typically charging $175 a week for a single room, $250 for a room with a double bed and $30 a week extra per child. Tenants Union of Victoria chief executive Mark O'Brien says: "These guys have worked out exactly what is the highest rent they can charge people, which leaves them just enough to survive if they're on benefits. They know … their residents will have to pay up or live on the streets."

The high rents also mean the residents have little chance to save the money to allow them to improve their circumstances. The businesses reported on by The Sunday Age are run cynically, by people with criminal backgrounds, with residents complaining of standover tactics. This is disturbing, but what is worse is the Government's compliance with these operations. Last December, the State Government handed responsibility for rooming houses to local councils, many of whom say they do not have the resources to take on the task. The law requires rooming house proprietors to register any property with four or more tenants with a local council, but charities and advocacy groups say many don't register and penalties need to be tougher. In Victoria, Consumer Affairs receives many complaints about rooming houses, yet often fails to follow through with meaningful action. Yet the accommodation is taxpayer-subsidised — about 50 per cent of residents have their rent directly debited from Centrelink payments.

What is needed is a willingness to sort out the mess. To insist on minimum standards for shared accommodation, for instance, and then to enforce them. At present, the slumlords are taking advantage of a policy gap. They are becoming rich because no level of government is prepared to take responsibility for ensuring poor renters get a fair deal. Last December, the Federal Government announced its intention to halve homelessness by 2020. It is a laudable aim, which will involve providing better, cheaper housing for the poorest among us. In the meantime, the shameful profiteering of the slumlords must be stopped.