Solving the rental crisis requires recognition of the critical role played by investors, according to an industry forum.

The group of developers, property managers, tenant representatives and policymakers convened by the REA Group called for reforms to drive better outcomes for renters while acknowledging also the needs of investors.

The Federal Government plans to boost supply by 1.2 million houses over the next five years, but the forum said a profound shift in policy was needed to ensure housing supply meets the needs of Australians.

Home building is lagging after years interrupted by the pandemic, supply shortages and builder collapses. This has exacerbated the rental shortage, created by years of discouragement to investors who supply over 90% of the homes occupied by tenants.

Mirvac chief executive of development, Stuart Penklis, called for real action following years of talk about housing. “We have seen significant debate over many years and now is the time to put a holistic strategy in place,” he said.

REA’s chief customer officer Kul Singh said there was significant pressure in the rental market nationwide, with a need for pragmatic solutions which aided developers, managers, and investors, as well as tenants.

Singh said it was critical not to penalise investment in housing, as it was crucial to stimulate housing developments. “The lion’s share of these investment purchases are by mum-and-dad investors,” he said. “We need to incentivise purchasers because at the moment investors are selling and not buying.”