Peak body calls scheme "unrealistic and far-fetched"
The Real Estate Institute of Australia has slammed the federal Greens’ rent-freeze proposal, calling it “far-fetched and unrealistic.”
Rents are up across Australia, rising at the fastest rate in 14 years. Rents have risen 9.1% in capital cities and 10.8% in regional areas since June 2021, according to Sky News.
To combat this, the Green party is pressuring the Albanese government to enact a two-year freeze on rent rises. The party’s proposal includes ongoing rent caps of up to 2% every 24 months, the end of no-grounds eviction, expanded tenant rights and a minimum standard for rental properties.
Max Chandler-Mather, Greens housing spokesperson, said the freeze would help tenants and their wages catch up to current rent prices.
“If the government is serious about cost-of-living relief, if they’re serious about affordable housing, then it’s a no-brainer to freeze rent rises,” he told Sky News.
However, REIA said the Greens plan “lacks a fundamental understanding on the key issues that will help Australian renters.”
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REIA president Hayden Groves said that while the plan was well-intentioned, it would do nothing to alleviate Australia’s long-term housing supply crunch.
“The real estate industry – particularly property managers and owners – have implemented the rental eviction moratorium during the last two years of the COVID-19 pandemic,” Groves said. “At the same time, rent has increased in areas where there is a chronic shortage of supply, and unless this is addressed, the situation will worsen.”
Groves said that price rises could best be dealt with by addressing the continued shortage of available homes.
“Dealing with supply in a real way over far-fetched and unrealistic proposals about a national rent control will alleviate pressures on renters,” Groves said. “Australia’s state and federal governments need to focus on encouraging supply and investment in private property markets, as without more houses and more investors, supply issues will continue to worsen.”
