WA’s $75m BtR Development Helping Hand Opens

A $75-million fund to kickstart build-to-rent developments in the West has launched.

The WA Government’s build-to-rent fund is now seeking expressions of interest for low and no-interest loans for build-to-rent proposals. 

The Build to Rent Kickstart Fund, administered by Keystart, is to provide concessional loans with terms up to 10 years, for projects of at least 40 homes.

At least 30 per cent of eligible projects’ homes must be affordable, capping rents at 25 per cent of gross income up to the thresholds allowed by Keystart. Rentals must be offered for at least 10 years.

Applications will be accepted until December 8, 2025.

No-interest loans will be provided at tenors up to three years, to cover 30 per cent of construction costs with a cap at $250,000 a home.

Low-interest loans are available for up to seven years beyond project completion and capped at 30 per cent of total asset value.

The initiative is intended to stimulate private investment into the build-to-rent model, which is booming in eastern states but slow to kick off in the west, according to the WA Government.

Housing minister John Carey said that the program was designed to spur private sector investment in the model and “accelerate the supply of rentals, complementing our Government’s record spend on housing measures”.

“We’re already backing build-to-rent with major government-led developments under way at Pier Street and the site of the former Stirling Towers,” Carey said.

The Government expects the fund to support hundreds of new build-to-rent homes, alongside a raise in state land tax exemptions to 75 per cent for build-to-rent projects. Land tax exemptions for build-to-rent have been a key lever for the Government’s efforts, while labour shortages in the state have been a significant hurdle.

Treasurer Rita Saffioti said that the Government was “throwing everything at building more homes”, including its $210-million Urban Connect Shared Equity scheme for new apartments and townhouses, new modular home loans, and the Graduate and Apprentice Loan scheme, which will launch later this year.