Local governments have signed up to a landmark housing accord between the Commonwealth, state and territory governments, investors, and the residential development, building and construction sector. 

The Australian Local Government Association (ALGA) has been included in the group as a representative of Australia’s 537 councils, recognising the role local government plays in facilitating affordable housing.

“A lack of affordable housing is one of the biggest challenges councils and our communities are facing, and we look forward to working with governments, financers and the housing industry to help facilitate more affordable homes for Australians,” ALGA president Linda Scott said.

“ALGA has also committed to partnering with the Government to develop the National Housing and Homelessness Plan.”

This week’s budget documents describe the housing accord to build 1 million new dwellings as an “aspirational” target, with the federal government itself only locked in for an extra 10,000 homes.

Up to $350 million will be spent over five years to do that, with the states and territories on the hook to support up to 10,000 more.

It is unclear where the houses might be built, but they are not limited to the cities.

Councils and state governments will need to find and free up land in good locations.