First National Real Estate’s chief executive, Ray Ellis says that rental reforms announced by the Andrews Government stand to hurt tenants more than they will help them, and will ultimately drive up rental prices.
“Far from protecting vulnerable tenants, the Andrews Government’s proposed reforms will prompt an increasing number of landlords to exit the market, further reducing the number of properties available for rent” said Mr Ellis.
“This will make other states more attractive to investors and exacerbate Victoria’s already significant shortage of affordable rental housing stock, driving up prices in the process.”
Victoria’s population is booming and, according to the Urban Development Institute of Australia, the state has developed a shortfall of 9,000 properties over the past two years. If the trend continues, there will be an undersupply of houses exceeding 50,000 by 2020.
“With a drop in the number of rental properties and a vacancy rate already below 2 per cent, where does the Andrews Government expect to re-house those who can’t afford to rent through the private sector?” said Mr Ellis.
Issued by: First National Real Estate
For further information contact: Stewart Bunn, National Communications Manager on 1800 032 332 or 0413 624 317