Any new block of land released by the ACT Land Development Agency (LDA) to the public will be available for land rent. For further details on the land available for rent, contact the Land Development Agency.
What is the ACT Land Rent Scheme?
The Land Rent Scheme is an ACT Government initiative to increase access to affordable home ownership. The main purpose of the scheme is to reduce the entry costs and mortgage payments for homeowners. The scheme is also expected to be used as a means for some people to advance their entry into homeownership, by saving to buy the land outright in the future while paying land rent.
Under the scheme, lessees rent the land from the Government. They are required to pay the Government land rent, calculated on the unimproved value of the block of land. Lessees are then required to construct a house on the land within two years of the lease being granted.
The scheme allows a person to lease the land rent block of land on an ongoing basis or to convert the land rent lease to a traditional Crown lease at a later date, effectively purchasing the land from the Government at that time. Land rent is not a ‘rent to buy’ scheme.
Other helpful FAQs.
Only single residential dwellings can be built on land rent blocks. Units or attached dwellings cannot be built on land leased under the scheme. Planning and quality controls applying to land rent blocks will be the same as for land held under traditional crown leases.
A lessee’s annual land rent payment will be calculated as a percentage of the unimproved value of the block of land. There will be two different rates available for land rent.
Two land rent rates are available:
- a discounted rate, calculated at 2 per cent of the unimproved value of land; and
- a standard rate, calculated at 4 per cent of the unimproved value of land.
The unimproved value takes into account the value of the land itself and not the value of any additions to the land – such as the house or garage.