Money doesn't grow on trees, but lately in Hobart it seems winter coats do.

Donation points have been set up where second hand clothing can be dropped off. ( Facebook: Free On A Tree )

A 10-year-old boy has come up with an innovative solution to the city's homelessness issue, which has been compounded by a severe shortage of housing.

The Free On A Tree initiative has been warmly welcomed by people who have experienced homelessness and charity organisations.

Oliver Edwards said the idea was simple, sparked by the flooding which hit Hobart in May when the record for rainfall in a 24-hour period was doubled.

He was given a homework challenge that asked him to come up with a way to help his community.

"I heard about the floods and the people that were camping at the Showgrounds," he said.

"I thought of Free On A Tree and I talked with mum about it and she thought it was a good idea.

"We put coats on trees and then people [who] need them and are cold can take them," he said.

He and his mother Cathy Edwards have set up donation points at various locations where people can drop their second-hand coats, and then they will be picked up and hung on trees in public spaces around the city.

Once the coat has been strung up, Oliver puts a sticker on them that says: "If you need this, it's yours".

"I hope that people [who] need the coats will take them," he said.

The idea was sparked by a homework challenge. ( ABC News: Rhiannon Shine )

Ms Edwards said they checked the weather forecast and made sure rain was not expected before choosing a public place where the coats would stand out.

"Just trying to really make it accessible and also to give people a little bit of privacy around taking a coat," she said.

"It's not always easy to ask for help."

Initiative welcomed by homeless, charities

Michael Henderson, who has been living at men's shelter Bethlehem House for three months, has noticed the coats and thought it was a "wonderful idea".

Before arriving at Bethlehem House, Mr Henderson said he was sleeping in a tent which got shredded in the wind.

"When you're out on the streets and you're homeless you really need something to keep you warm," he said.

"Especially coming into winter, Hobart gets so cold. And there are many people out there that appreciate the fact that they can get something warm.

"Even if it has been raining, and they find one that is wet, it doesn't take much to take it here [to Bethlehem House] or to the Salvos to get it dried, and you've still got it."

Mr Henderson said the gesture is welcomed by those "out on the streets".

"If they can't get a sleeping bag or a tent, a nice warm jacket or jumper is the next best thing," he said.

"Just having that warmth is highly appreciated by the guys living out on the streets."

Oliver and his mum Cathy know "it's not always easy to ask for help". ( ABC News: Rhiannon Shine )

Bethlehem House chief executive Stephanie Kirkman Meikle was impressed by the initiative.

"I love the idea that he's thinking about the stigma that might surround people with homelessness and how difficult it can sometimes be to ask for help," she said.

"From that point of view he's had a great idea.

"I think he is a young community leader of the future, I think he has a big heart and has come up with an innovative solution."

St Vincent De Paul Society's Pat Flanagan also backed the initiative, but reminded people not to forget about traditional donation points this winter.

"I just found it very inspiring that someone could see this area, see people in need, and come up with a solution for it," he said.

"We're always after good quality clothing and it has always been a principle of St Vincent de Paul Society that the best clothing should go to those in need."

Oliver and his mum have hung about 40 coats on trees around Hobart so far. Their goal is to distribute 100 coats in June.

They hope the community will take up the Free On A Tree initiative and it will continue to grow.