Political rivals team up for affordable housing fight

Advocates say affordable housing policy has failed to meet existing need and are calling for a rethink of the meaning of "affordable".

Rival sides of NSW politics put differences aside on Friday morning to demand the state government do better, slamming current definitions of affordable housing as misguided.

Currently, affordable housing refers to properties where rent is charged at less than 80 per cent of market value. Advocates say that definition should be no more than 30 per cent of a person's income.

Independent MP Alex Greenwich said affordable housing across Sydney was being replaced with luxury developments containing fewer cheaper units, describing this as a tokenistic gesture.

"We're actually losing affordable housing, and we are displacing more new environments to make way for property investors and property speculators and luxury apartments," Mr Greenwich said.

Greens MP Jenny Leong said affordable units needed to be delivered in perpetuity, rather than to the current 15-year time limit.

"It is shameful and unacceptable any affordable housing put in new developments in our city would expire within 15 years," she said.

"It is very clear from the broad political scope here today represented, we are all supportive of recognising affordable housing is forever."

LIberal MP Chris Rath also said affordable housing was not working in its current form.

"We have a situation where Homes NSW has determined there isn't a single LGA in all of NSW that is affordable for people earning $60,400 per year or less at 80 per cent market rent, so the system clearly is not working," he said.

The definition of affordability used by advocates like Affordable Forever, and adopted by the Inner West and City of Sydney councils, states rent should not cost more than 30 per cent of a person's income.

"We know that if you're spending more than 30 per cent of your income on housing you're considered in housing stress," Inner West Greens councillor Izabella Antoniou told AAP.

"Genuinely affordable homes can't have their price tied to what the market says."

Despite arguing that the current definition of 80 per cent of market value is not working, Mr Rath declined to confirm whether the Liberal Party would also adopt the alternate definition, but said the party was reviewing its policies ahead of the election.