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Posted: 2024-07-15 20:13:12

In short:

Several public housing tenants in one Victorian country town are facing steep rent rises.

Homes Victoria says the rent increases have been calculated based on market values, but tenants won't pay more than 25 per cent of their household income in rent.

What's next?

Affected tenants say they will have to cut back significantly on basic expenses to cope, with one 75-year-old considering moving back into a caravan.

Public housing tenants in regional Victoria fear they will be forced out of their properties or have to go without basic needs as some face rent increases of up to 70 per cent.

Donald resident Robert Christopher's rent will rise from $84 per week to $150 per week in August.

In a letter seen by the ABC, Homes Victoria advised the 77-year-old the increase was calculated using market rent indices, including the median rent value based on area and property type.

Mr Christopher receives a subsidy that will lower his rent slightly, to $288.70 per fortnight, but said he would still not be able to live comfortably on his pension of about $1,000 per fortnight.

"I am going to have to cut back on everything," Mr Christopher said. 

"[I'll live on] peanuts and noodles.

"I need new glasses and a new pair of shoes, I have Buckley's and none chance of getting them."

Mr Christopher is one of several social housing residents in the small town who have received letters from the Department of Families, Fairness and Housing informing them their rents are going up, as the issue affects tenants across the state.

A mean wearing a grey sweater, glasses, and baseball cap standing in front of a brick house with garden

Geoffrey Stopps says he is in a "tight situation" financially as the cost of living rises.(ABC Wimmera: Rebekah Lowe)

A Homes Victoria spokesperson said rent reviews happened every year and no tenant in public housing would pay more than 25 per cent of their household income in rent.

"This process ... provides tenants an opportunity to update their declared income with Homes Victoria to ensure they only pay what they can afford," the spokesperson said.

"This means for some tenants, their rent will go down."

However, tenants and advocates say the rising cost of living makes some of the rents untenable.

Cancer survivor 'might go back to caravan'

Neighbour Geoffrey Stopps, 75, is facing a similar rent increase.

A retired pensioner and cancer survivor, Mr Stopps lived in a caravan park before moving into social housing in Donald in 2018.

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