Investors grappling with rising costs due to recent rental reforms may start exiting the market, warns the Property Investment Professionals of Australia (PIPA).

PIPA chair Nicola McDougall says this could worsen the housing crisis.

PIPA’s 2024 Investor Sentiment Survey reveals that 14% of respondents sold an investment property this year, up from 12% in 2023, showing more investors are leaving than returning.

In Victoria, a wave of “anti-investment” rental reforms has led to 22% of Melbourne investors selling in the past year.

The survey also highlights steep increases in interest costs, with over 70% of investors seeing annual mortgage repayments rise by up to $60,000.

McDougall stresses the need to retain investors, saying, ” We need to encourage investors to get into the market more and we need to especially encourage them to stay over the long term. And one way of doing that is stopping these continual changes to legislation.”