NEW legislation to ease hardship on prospective tenants is attempting to increase the number of affordable homes in the market.

The scheme will “indefinitely” extend land tax exemptions for generous landlords who rent out their properties at less than 75 per cent of market rates.

The ACT government said the measures amid the ongoing rental crisis will also reduce the liabilities on the dwellings to help address affordability issues across Canberra.

Chief Minister Andrew Barr said landlords can reduce their land tax “completely” on low to moderate incomes through a registered community housing provider.

The changes to ACT property laws was passed in the Legislative Assembly this week that removed the expiry date of the past scheme, which has been increased from 125 to 250 available properties.

“Incentives such as these empower the community to make a real difference to people’s lives,” Mr Barr said.

“There are currently 54 landlords involved in the scheme, which means 54 more families will have a safe, secure home they can afford.

“Every Canberran, no matter their circumstances, should have access to safe, affordable housing that suits their needs.”

A not-for-profit real estate organisation revealed that vacancy rates throughout the ACT have fallen to below one per cent and was the key factor behind driving up rental prices.

The government had committed to “growing and renewing” more public housing during its 2020-21 budget announcement.

The Productivity Commission released data for its 2021 report that also had proven that ACT residents spend the highest proportion of their incomes on rent nationally.

Minister for Homelessness and Housing Services Rebecca Vassarotti said exemptions for land tax is an “opportunity for our community to get involved in a direct, visible, and people-focused approach to the housing crisis”.

The extension of the scheme is one of the first initiatives delivered from the Parliamentary and Governing Agreement.

“These changes will empower more Canberrans to contribute a significant piece of the puzzle as we work toward ensuring everyone has a place to call home,” she said.

“We hope that changes such as this will help to transform the view of housing, as a right and a community good, rather than as a vehicle for wealth generation.

“This alone can’t solve the affordability crisis, but an important initiative to actively engage homeowners, who care to help Canberrans in need access a home.

“It’s not just a tax incentive; it’s a contribution landlords can be proud of.”

Ms Vassarotti felt the federal budget was a “missed opportunity” to step up and invest more in social housing, but said the Commonwealth’s renewal of the Equal Remuneration Order for Specialist Homelessness Services that provides emergency, long-term accommodation, focusing on women and children escaping domestic violence, was “one bright spot”.