Focus on supply means there's hope the current housing crisis can be brought under control, REINSW head says
The Real Estate Institute of New South Wales has welcomed the new state government’s focus on housing supply.
Last week, newly elected Premier Chris Minns said that his government would focus on reforms to make the planning and approval system more efficient and increase the number of homes built in NSW. He also ruled out rent freezes, saying they would have a negative impact on the supply of rental accommodation.
Tim McKibbin, CEO of REINSW, said that Minns’ focus on the supply side means that there’s hope the current housing crisis can be mitigated.
“For the past 12 years, we’ve seen housing policy in NSW amount to populist announcements which focus on the symptoms of the problem and not the problem itself. Look where that has left us,” McKibbin said. “The need to increase supply to keep up with increased demand was always apparent, and hopefully now we will see some action. For people looking to buy, the choices are slim, and we all recognise the challenges faced by renters at the moment.”
Rental woes
“A renter standing in a queue of 50 people waiting to inspect a single property has a clear idea of what the problem is: a lack of choice,” McKibbin said. “The REINSW welcomes the government’s ruling out of rent caps in an environment of higher interest rates. The evidence clearly shows that the consistent erosion of the rights of landlords deters investment and drives existing landlords out of the market.”
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McKibbin said that banning “no grounds” terminations and other “anti-landlord moves” have reduced the supply of rental property on the market.
“With increased supply, any apparent ‘need’ for Parliamentary intervention into the further erosion of landlords; rights will evaporate,” he said.
Planning reform
McKibbin said that extended approval timelines were also a major stumbling block for increasing supply.
“The fact it can take a council longer to approve a development than it takes to physically build the property highlights the absurdity of the planning system,” he said. “Other state consent authorities can grant approval for projects in a reasonable time frame, and it’s time for councils to lift their game and do likewise. They must be made accountable to deliver the housing targets needed in their jurisdictions so that the people they are meant to be serving have roofs over their heads. Clear direction from the NSW government that the status quo is no longer acceptable is an important first step to addressing the housing supply crisis.”
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