An evaluation by the University of Melbourne has found that the model addresses two key barriers to home ownership: the requirement of a high deposit, and the capacity to qualify for and service a large mortgage.
“Our research shows that most of the residents who bought into the Melbourne Apartment Project had been long-term social housing tenants,” University of Melbourne architecture, building and planning researcher Katrina Raynor said.
“They had been dreaming of homeownership for a long time but had never had the capacity to buy a home until now.”
“Currently no consistent mechanisms designed to support developers or not-for-profit organisations to develop affordable homeownership options for social housing tenants or low income households.”
Researchers found the Barnett Model both scalable and appropriate for a subsection of social housing tenants that are likely to benefit from the opportunity to transition into homeownership.
“The report demonstrates this innovative and realistic initiative can provide a successful pathway into homeownership for social housing residents,” Melbourne City Mission chief executive Vicki Sutton said.
“This opportunity also frees up social housing for many people languishing on social housing wait lists.”
This model, considered under the broad umbrella of shared equity homeownership models, now looks to help “high capacity” social housing tenants transition into homeownership and create vacancies in social housing for those on the waiting list.
Plans are already under way for crisis accommodation in Frankston and another Barnett Model development in Brunswick to extend the shared equity home ownership model developed as part of the original Melbourne Apartments Project.