Treasurer Wayne Swan announced on Tuesday the fourth round of the national rental affordability scheme (NRAS) to cover another 17,000 homes across Australia.

Under NRAS, successful applicants are eligible to receive a National Rental Incentive for each approved dwelling. This allows developers to rent new homes and apartments to eligible low and moderate income households for at least 20 per cent below the market rate for more than 10 years.

The Residential Development Council has welcomed the announcement.

Caryn Kakas, Residential Development Council Executive Director, said NRAS has been very successful in meeting the demand for affordable rental housing for families on low to moderate incomes.

“The fourth round of successful NRAS applicants has brought a greater number of private sector developers participating in delivering affordable rental housing stock,” said Ms Kakas.

“NRAS has provided a strong base for the delivery of rental housing in the market. The early rounds have set the foundation with a long term incentive that can facilitate improved affordable housing delivery by both the not-for-profit and private sector.

“By supporting these projects, the NRAS programme has bridged the gap between commercial viability and the market demands from key workers for secure rental housing options in our cities and regions,” said Ms Kakas.