Are you among the 2 million Australians who may be eligible for a two-year rent freeze?
- Replies 35
In today's unpredictable reality, with its constantly rising rent and property dramas, the sun seems to be peeking out from behind the clouds for Aussie tenants. Tired of the annual 'Rent Increase Notification' that adds another worry to our growing stack of bills? Brace yourself for a huge change! If the currently contemplated proposal sails smoothly through the decision sea, Australian tenants—especially those in Victoria—could witness a two-year freeze of their rents.
Victorian Premier Daniel Andrews has confirmed that his Labor government is considering this rent freeze. This isn’t the first time such an idea has been floated. Remember in 2019 when Melbourne introduced a one-year rent freeze? The move was largely appreciated by tenants trying to keep up with the cost of living crunch.
'We introduced a one-year freeze, along with 130 other amendments to the Residential Tenancies Act, because reform in this space was crucial,' Andrews told reporters.
'I'm not ruling out further changes,' he added.
Kelly, a working mother in Victoria, is one of many Australians struggling with escalating rent.
'The annual hike played havoc with my budgeting. Just when I thought I had my finances organised, the rent increase would throw everything into disarray. A rent freeze would be a welcomed blessing.'
Andrews is also the first state premier to consider the Greens' suggestion of a two-year rent freeze. At the national level, the Greens have promised to obstruct the Labor government's $10 billion Housing Australia Future Fund, which aims to erect 30,000 new social houses, until they agree to a two-year freeze of rents.
We’ve already witnessed Queensland following suit, introducing a one-year freeze on rent in July. However, the proposal of a two-year freeze doesn't seem to have enthusiasts yet.
Meanwhile, the Australian Capital Territory has a unique approach to protect renters from arbitrarily inflated rents when renewing leases.
Andrew Barr, Labor Chief Minister of ACT, has been championing an initiative since 2019 that caps rent increases to a maximum of 10% beyond inflation. With the inflation rate currently at 5.6%, any hike in rent can only be a slight 0.56% more and no more than 6.16%.
On the other side of the coin, this proposition could dent the enthusiasm of property owners planning to rent out properties, eventually shrinking the availability of housing and indirectly triggering a surge in rental costs.
According to Federal Housing Minister Julie Collins, 'The overwhelming evidence suggests that it doesn't work.' She further explained to host David Speers on ABC Insiders, suggesting that while a rent freeze may provide immediate relief, it could potentially shrink the supply of housing over time.
How will this proposed solution interact with the global rental scene? If we look at Berlin, Germany, authorities there also introduced a five-year rent cap in 2020 to battle the housing crisis. But in 2021, Germany's top court overturned this law, stating it encroached on federal jurisdiction, turning the dream into a short-lived reality. So, the efficacy of a rent freeze is still a topic of global debate.
The ray of sunshine amidst this discussion is that should the Andrews government dive into the ocean of a two-year rent freeze, relief awaits two million Aussie tenants. Considering the 2021 Census data, where we learned that Victoria—home to 6.704 million people—has 28.5% of its population living in rented homes, this move could bring much-needed reprieve from the rising cost of living many have no choice but to deal with.
To provide a visual understanding, look at this infographic comparing average rent rates across various Australian cities.
If we shift our glance to the rent rates across Australian cities, we note that Melbourne's combined house and unit rents have leapt by a hefty 19.9% over the past year, averaging $582.50 a week, as per SQM Research data. While it's far cheaper than Sydney's median weekly rent of $784, Brisbane's average of $618, or Perth's $619, it outpaces Adelaide's $530 and Hobart's $495.
Now, let's navigate down a different alley. Do you know as a tenant, you hold significant rights? Australian law ensures that your basic rights as a tenant are protected. For instance, the rental property should be safe and secure, fit for you to live in, and you should not be unfairly evicted. Make sure to familiarise yourself with your rights, it’s always handy to know!
If you find yourself navigating choppy renting waters, here are quick and easy negotiation strategies you can use during rent discussions:
1. Research local market rates.
2. Prepare a convincing and realistic budget.
3. Approach your landlord professionally and kindly.
Remember, communication is key. Never shy away from addressing your concerns with your landlord.
That’s our roundup of the rental landscape at the moment. Are you for or against the proposed two-year rent freeze? We would love to hear your thoughts in the comments below.
Victorian Premier Daniel Andrews has confirmed that his Labor government is considering this rent freeze. This isn’t the first time such an idea has been floated. Remember in 2019 when Melbourne introduced a one-year rent freeze? The move was largely appreciated by tenants trying to keep up with the cost of living crunch.
'We introduced a one-year freeze, along with 130 other amendments to the Residential Tenancies Act, because reform in this space was crucial,' Andrews told reporters.
'I'm not ruling out further changes,' he added.
Kelly, a working mother in Victoria, is one of many Australians struggling with escalating rent.
'The annual hike played havoc with my budgeting. Just when I thought I had my finances organised, the rent increase would throw everything into disarray. A rent freeze would be a welcomed blessing.'
Andrews is also the first state premier to consider the Greens' suggestion of a two-year rent freeze. At the national level, the Greens have promised to obstruct the Labor government's $10 billion Housing Australia Future Fund, which aims to erect 30,000 new social houses, until they agree to a two-year freeze of rents.
We’ve already witnessed Queensland following suit, introducing a one-year freeze on rent in July. However, the proposal of a two-year freeze doesn't seem to have enthusiasts yet.
Meanwhile, the Australian Capital Territory has a unique approach to protect renters from arbitrarily inflated rents when renewing leases.
Andrew Barr, Labor Chief Minister of ACT, has been championing an initiative since 2019 that caps rent increases to a maximum of 10% beyond inflation. With the inflation rate currently at 5.6%, any hike in rent can only be a slight 0.56% more and no more than 6.16%.
On the other side of the coin, this proposition could dent the enthusiasm of property owners planning to rent out properties, eventually shrinking the availability of housing and indirectly triggering a surge in rental costs.
According to Federal Housing Minister Julie Collins, 'The overwhelming evidence suggests that it doesn't work.' She further explained to host David Speers on ABC Insiders, suggesting that while a rent freeze may provide immediate relief, it could potentially shrink the supply of housing over time.
How will this proposed solution interact with the global rental scene? If we look at Berlin, Germany, authorities there also introduced a five-year rent cap in 2020 to battle the housing crisis. But in 2021, Germany's top court overturned this law, stating it encroached on federal jurisdiction, turning the dream into a short-lived reality. So, the efficacy of a rent freeze is still a topic of global debate.
The ray of sunshine amidst this discussion is that should the Andrews government dive into the ocean of a two-year rent freeze, relief awaits two million Aussie tenants. Considering the 2021 Census data, where we learned that Victoria—home to 6.704 million people—has 28.5% of its population living in rented homes, this move could bring much-needed reprieve from the rising cost of living many have no choice but to deal with.
To provide a visual understanding, look at this infographic comparing average rent rates across various Australian cities.
If we shift our glance to the rent rates across Australian cities, we note that Melbourne's combined house and unit rents have leapt by a hefty 19.9% over the past year, averaging $582.50 a week, as per SQM Research data. While it's far cheaper than Sydney's median weekly rent of $784, Brisbane's average of $618, or Perth's $619, it outpaces Adelaide's $530 and Hobart's $495.
Now, let's navigate down a different alley. Do you know as a tenant, you hold significant rights? Australian law ensures that your basic rights as a tenant are protected. For instance, the rental property should be safe and secure, fit for you to live in, and you should not be unfairly evicted. Make sure to familiarise yourself with your rights, it’s always handy to know!
Key Takeaways
- Two million tenants could potentially receive a rent freeze for two years under a proposed Victorian plan.
- Premier Daniel Andrews confirmed the Labor government is considering the idea, having previously enforced a one-year rent freeze in 2019.
- The federal Greens have said they will block the Labor government's $10 billion Housing Australia Future Fund unless a two-year rent freeze is also implemented.
- Critics argue that rent controls discourage investors from renting out properties, reducing supply and raising market prices.
If you find yourself navigating choppy renting waters, here are quick and easy negotiation strategies you can use during rent discussions:
1. Research local market rates.
2. Prepare a convincing and realistic budget.
3. Approach your landlord professionally and kindly.
Remember, communication is key. Never shy away from addressing your concerns with your landlord.
That’s our roundup of the rental landscape at the moment. Are you for or against the proposed two-year rent freeze? We would love to hear your thoughts in the comments below.