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Renters Rights In Gov’t Sights

Property analysts warn a push to give renters more rights will actually result in fewer properties for rent.

State and territory housing ministers are meeting to discuss policies which may help renters and the Prime Minister has already flagged he may consider regulating the size and frequency of rent increases.

Economist Saul Eslake says if serious restrictions are implemented, preventing landlords from increasing rents by an amount less than inflation or forcing them to keep rents fixed for more than a year, it will dissuade investment in the housing market.

Judo Bank, economic adviser, Warren Hogan, says artificial caps on rents will “fundamentally change the investment market and jeopardise future supply of housing in this country”.

“We now have to get to the heart of the problem which is demand and supply rather than trying to do a patchwork of policy solutions with a whole bunch of unintended consequences which undermine the medium to long term performance of the economy,” he says.

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