Australian PM buys £2.2m house as his government launches affordable homes plan

Australian prime minister Anthony Albanese has bought a $4.3m (£2.2m) property on the New South Wales coast, raising eyebrows as his government aims to roll out an affordable housing initiative.

He acquired the four-bedroom, three-bathroom luxury home in Copacabana, described as “clifftop perfection”, in September.

The property is located in a popular Sydney vacation spot and near the family home of Albanese’s partner Jodie Haydon. It features timber-lined cathedral ceilings, open-plan living spaces, sea views from the bedrooms, an entertaining deck, and a garden designed with tropical and native species.

Speaking to reporters at a press conference in Queensland, Mr Albanese said he was “much better off as prime minister” but knew about the “struggle” that Australians faced.

“I earn a good income, I understand that. I understand that I’ve been fortunate,” he said. “But I know what it is like to struggle. My mum lived in the one public housing home that she was born in for all of her 65 years. I know what it is like, which is why I want to help all Australians into a home.”

The prime minister also cleared the air on his retirement plan. “I’m planning to be in my current job for a very long period of time,” he said.

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The timing of the property purchase raised eyebrows as the Albanese government seeks to address the pressing issue of housing affordability ahead of the upcoming elections.

His Labor party recently introduced a $10bn (£5.1bn) fund aimed at supporting social and affordable housing, although efforts to assist lower-income Australians in purchasing 40,000 homes remained stalled in parliament.

Mr Albanese’s decision to purchase the luxury home has sparked criticism from within his own party as the Labor government has pledged to build 1.2 million homes by 2030 to help ease the housing crisis.

Some Labor MPs argue the prime minister’s choice reflects poorly on the government at a time when many Australians face rising interest rates, soaring rents, and escalating property prices.

“I can’t think of a greater act of self-sabotage in my life. I am gobsmacked,” an MP told the Sydney Morning Herald on the condition of anonymity. “If you’re a Labor MP up against a Green at the next election, good luck. Some people [within Labor] were aware and tried to stop it. My instinct is this is f***ing terrible.”

Ben Fordham, the Radio 2GB presenter who reported on the purchase, the property sold for $4.3m, less than the $4.65m (£2.3m) million its previous owners paid during the real estate boom sparked by the Covid pandemic.

Several Labor MPs have defended Mr Albanese’s right to purchase the property, however.

“I don’t have a problem with the PM buying a house,” Sydney MP Mike Freelander said. “That’s what it can cost in NSW these days.”

The median price for a four-bedroom home in Copacabana is reported to be about $1.82m (£933,000).

A spokesperson for Mr Albanese said the decision to buy the house was influenced by Ms Haydon’s desire to return to her roots as three generations of her family lived in the area.

“When the process is complete, it will be declared on the parliamentary register,” the spokesperson added.

The register currently includes Mr Albanese’s investment property in Dulwich Hill, Sydney, which is on the market for $1.85m (£948,000) after a last-minute decision to withdraw it from auction.

Opposition Leader Peter Dutton refrained from criticising the prime minister’s purchase, instead noting the financial difficulties many Australians were experiencing in the wake of 12 interest rate hikes since May 2022.

“I wish him and Jodie well. They’re obviously planning for the next stage of life post-politics,” Mr Dutton said as he took a swipe at the prime minister’s economic policies.

“The homeowners in Australia that I’m worried about at the moment are people who can’t afford their mortgages. People have had 12 interest rate increases, and interest rates should come back, as they’re doing in the United Kingdom, the United States, Canada and New Zealand, but because of Mr Albanese’s bad economic management, we are seeing inflation remain higher and therefore interest rates remain higher as well.”

Greens housing spokesperson Max Chandler-Mather in turn highlighted the perceived failings of both leading parties in addressing the housing crisis.

“Labor & the Liberals have created a housing system where a property investor can buy a $4.3m beachfront home, while millions can’t even find an affordable rental, let alone buy a house of their own,” he wrote on X.

“Yet Labor still want to give property investors $176bn in tax handouts.”