Rental Crisis ? or have we just swung back to pre-pandemic

The Australian Greens party released a statement calling for private rents to be frozen for the next 24 months

And it got shot down and pulled apart pretty quickly and easily.

The Greens stated that Australia is “experiencing a rental and cost-of-living crisis and the government needs to act now”. 

Prime Minister Anthony Albanese said he had not seen any proposal, nor had the Greens raised the potential of a rental freeze with the government. Stating,

“it’s not clear to me, short of nationalising property, how that could be achieved”, the Prime Minister indicated that “what we do is support real action that has a real process to occur”.

Real Estate Institute of Australia (REIA) president Hayden Groves has considered the plan well-intentioned but said that “it will do nothing for Australia’s long term housing supply crunch”.  

What is being experiencing right now is a “rental swing”.

In every city across our nation, rents have swung back to either where they were pre-pandemic or in some cases, slightly above.

Why? I hear you ask…Because putting it quite simply, “demand outweighs supply”.

The apartment supply pipeline started to decline well before COVID-19 showed up on our doorsteps. 

Those 'greedy landlords' that the Green say are putting extreme financial pressure on tenants by increasing rents by 20-34 percent. Well don’t forget they heavily reduced rents during COVID-19.

 

The recent legislative changes have seen new rules around rent increases.

These guidelines are around how often you can increase your rent and how much notice you need to provide your renter:

Victoria  – Once every 12 months – 60-day notice period

New South Wales – Once every 12 months – 60-day notice period

Queensland – Once every six months – 2 months notice period

South Australia – Once every 12 months  – 60-day notice period or

Once every six months if its been a long term tenant that started before March 2014

Western Australia – Once every six months – 60-day notice period

ACT – Once every 12 months – 8 weeks’ notice

NT – Once every six months – 30-day notice

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