REIA outcry at capped rents proposal

By |

Real Estate Institute of Australia president Pamela Bennett has slammed the Labor Party’s proposal to cap rents in Australia, saying it would be disastrous for rental affordability and the property market.

The proposal, which is to be considered at the national conference, aims to monitor rent costs in the private rental market and examine mechanisms to maintain affordability by introducing rent capping legislation.

"To cap rents in the private rental market would be counterproductive to the objectives of improving affordability. It would reduce the supply of rental housing which would be detrimental to rental affordability," Bennett said.

An REIA press release said that the move would see a similar outcome to the Hawke Government’s 1985 decision to deny investors tax deductibility of interest payments. That decision was reversed within two years after it resulted in an undersupply of rental property and escalating rents.  

“The proposal is not sustainable and when it is reversed, rents will soar,” Bennet said, adding that instead of capping rents in the private rental market, more focus was needed on increasing supply in the public and private rental market.

 

Related articles:

Upward trend for Sydney rents

Renters spend more on housing

Three tips for attracting A-list tenants

Houses or units: which is more profitable?

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : rockville , nundah , north lambton , reservoir , mt lawley

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here