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.

Image by tierramallorca from unsplash

​

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.

The median unit rent in June 2023. Image Credit: SDC

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.

 

[Rob44]

I feel empathy for the landlord and tenant who are stuck in this situation,the problem is the fault of both fed.gov.and state. States are dragging their feet and fed gov is exasperating the situation by bring thousands of migrants when they know this problem exists.
So what is their agenda?

$220 000 for each MP and $576 000 per Prime Minister. Plus perks, pensions and their political pomposities.

 

[GillyH]

My tenants have paid below market price for 2 years. $440 a week for a large newish property 4x2. My mortgage doesn't cover it at all. $2500 a month. I have to find the shortfall. Time to sell.

 

[Lozbutler]

It doesn’t help when the Victorian Government makes a massive increase in land tax to dig themselves out of the debt they have incurred on their “feel good” projects. Landlords are already struggling with the interest rate increases but adding the bi-annual safety check costs plus interest rates plus land tax makes it very difficult for landlords to justify owning rentals. I am dreading what will happen when our lease runs out.

 

[Elizabeth Ross]

"bad tenants, more than good ones I have found over the years".

Yes.

And I think it is going to get worse for landlords. They should be able to say what they want and don’t want in their property as they own it, not the tenants. There are a lot of good tenants and good landlords but it isn’t fair that the owner of a property has no say in who rents their property. I can’t imagine going into Coles and wanting to paint the walls and take my dog and refuse to let the owner in. Let’s be consistent!

 

[kvydm01]

This is so "nice" news for me and my wife...
We have one investment property in Victoria, it's a unit.
From now on for 10 years we will have to pay extra $975 a year in land tax, which we did not pay before.
And now this possible rent freeze...
My wife retired already, and I'm planning to retire next year.
We actually rely on the money from that property, and looks like we may have quite a bit less of it.
Our tenant is actually very good, so we did not rise for a few years, we have probably the lowest rent price in the suburb...

 

[Trudi]

I sold a townhouse and a unit in NSW during the past four years, primarily because I found that the body corporate laws were getting beyond the ridiculous in addition to the tenancy laws favouring bad tenants at every step. I still own a house in Perth and another in South Australia.

Over the past 30 years of renting out properties, I have kept rent increases at a minimum for the duration of a tenant's occupancy. I have also let the fixed term leases issued when a tenant first moved into a house to roll over into a continuing lease. However, as most states have now moved to make "no fault evictions" illegal, I have instructed my property managers to ensure that tenants were always on fixed term leases and that each new lease is issued with a rent increase within the permitted ranges.

As for a 2 year rental freeze, it wouldn't impact too much as I own both properties outright, but as a self-funded retiree, I rely on the income from the two properties to live on in addition to my superannuation pension.

If a 2-year rental freeze is introduced in Victoria, I can see that many rental properties will be put up for sale, which would make things even more difficult for renters on low incomes.

 

[HamMcG]

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.

Image by tierramallorca from unsplash

​

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.

View attachment 25900

The median unit rent in June 2023. Image Credit: SDC

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.

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.

Image by tierramallorca from unsplash

​

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.

View attachment 25900

The median unit rent in June 2023. Image Credit: SDC

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.

These stories pit Aussie against Aussie. If governments continue to let foreigners buy up property and increase immigration unsustainable levels then average Australians both landlord and tenants will pay the price.

 

[siameezer]

Rental Assistance and other Centrelink thresholds like the Low Income healthcare card need increasing to accommodate the cost of living. They are 25 years out of date. Stocks of public housing need drastic increases with low income earners who qualify for housing don't have to wait years.... with the option of renting only, or renting to buy available.

Exactly. I am on the waiting list for housing and so far it has been 11 years and no signs yet of getting near the top of the list. I am struggling in the private rental market and it gets harder every year.
I feel sorry for the small investor who has faced such big mortgage, tax and other increases and, as a tenant, I do not feel a rent freeze is a good idea at all. Landlords will just massively increase rents to make up for the fact it can't go up more than every two years. I like the ACT approach of limiting the increases to CPI plus 10% (of CPI).
I just wish there was a way to curb the greed of some of the overseas investors. My whole block of flats is owned by the same owners (a deceased estate of the original Chinese man who owned them), plus the same estate owns a whole street in a neighbouring suburb. The rent goes up every year BUT no maintenance or upkeep is done here. When the old man was alive we had decent handymen and tradies and now they either don't fix things or they use the same handyman who is useless (it cost me over $300 to have a plumber fix the mess he made of my kitchen taps and I only paid myself to avoid this idiot coming back and making things worse). They don't do compulsory gas checks (my stove has never been checked in the 23 years I have lived here despite them knowing it turns itself off at will and the oven door doesn't close properly) and you live under the constant threat of higher rent increases if you don't kowtow to the property manager. These are the landlords I want dealt with ... not the small Mum and Dad investor who is doing it tough. While they are at it they can clean up the real estate industry and make property managers aware that tenants are not "scum" (as one property manager alluded to tenants) and that we are humans who deserve to be treated with respect.

 

[GillyH]

This is so "nice" news for me and my wife...
We have one investment property in Victoria, it's a unit.
From now on for 10 years we will have to pay extra $975 a year in land tax, which we did not pay before.
And now this possible rent freeze...
My wife retired already, and I'm planning to retire next year.
We actually rely on the money from that property, and looks like we may have quite a bit less of it.
Our tenant is actually very good, so we did not rise for a few years, we have probably the lowest rent price in the suburb...

I totally understand, I would like to retire. The current rental price for our property is $500-600 a week my tenants have paid $440 for over two years. Not all landlords are greedy.

 

[Flintstone]

What is seriously needed is a campaign not so much to Freeze rent rises but to limit the amount in % to what landlords can put the rent up per year. As one persons does not fit all and this business of going by the value of houses in the area and down the road, 1 rule proberly dosnt fit all. as a example say 2 bedroom units up to 8% of the current of the current rent depending on the age of the property 2 bedroom houses 10%. So whats to stop landlord putting it up the full 8% ide say the willing to sign longer time leases 1-2-or 3 year leases. if the is willing to sign a longer lease then the deal should be a little less.

 

[GillyH]

What is seriously needed is a campaign not so much to Freeze rent rises but to limit the amount in % to what landlords can put the rent up per year. As one persons does not fit all and this business of going by the value of houses in the area and down the road, 1 rule proberly dosnt fit all. as a example say 2 bedroom units up to 8% of the current of the current rent depending on the age of the property 2 bedroom houses 10%. So whats to stop landlord putting it up the full 8% ide say the willing to sign longer time leases 1-2-or 3 year leases. if the is willing to sign a longer lease then the deal should be a little less.

That is already in place, no more 10% per year.

 

[Jay Jay]

I rent and am a pensioner but I do not agree with this plan.

*How would landlords wear the costs of increasing rates, taxes, compliance etc over a 2 year period? Landlords are NOT charities. Many more would probably sell their properties leaving even fewer housing options for renters.
*It would make the rent increases at the end of 2 years more hefty than they are currently.- a huge hit in one move.
*There would be fewer leases of more than 12 months IF this 'not fully explained' proposal applies to tenants who have leases of 2plus years.

I do NOT think that those politicians, Greens initially and Labor now, who support this rental freeze, have considered the consequences of this ill-thought out plan on those they are presumably trying to assist. It is a plan that costs government very little, but many thousands of Australians a lot.

Governments at all levels should be actively and QUICKLY working towards increasing our housing stock, and lessening the 'competition' for houses by limiting the numbers of migrants - at least until such time as current citizens are supported by ALL necessary infrastructure.

 

[gordon1940]

Some landlords are greedy and continue to put rents up. But there are different scenarios.

My daughter and hubby purchased a house in 2018 and rented it out until they were ready to move in ( they were living with inlaws ) they moved in earlier this year .
In 5 years they never increased the rent once, they gave the tenants 6 months notice .
After six months the tenants refused to move out and were taken to the tribunal and were given another 6 weeks to 7 1/2 MONTHS to move out. When they finally moved out my daughter found a lot of damage .

Another daughter single mum with 3 kids her rent just went up $60 aweek.

I understand putting a rent freeze but it's a catch 22 , mortgages have gone up ( my daughter is paying $300 more a week ) so landlords are putting up rent because their mortgage is going up.

It's a terrible situation, and there are two sides to every story .

Sure there are Greedy Landlords, however, let’s not forget the rises in Gas, Water, Electricity and Shire rates for a start apart from Mortgages.

 

[GillyH]

t

I rent and am a pensioner but I do not agree with this plan.

*How would landlords wear the costs of increasing rates, taxes, compliance etc over a 2 year period? Landlords are NOT charities. Many more would probably sell their properties leaving even fewer housing options for renters.
*It would make the rent increases at the end of 2 years more hefty than they are currently.- a huge hit in one move.
*There would be fewer leases of more than 12 months IF this 'not fully explained' proposal applies to tenants who have leases of 2plus years.

I do NOT think that those politicians, Greens initially and Labor now, who support this rental freeze, have considered the consequences of this ill-thought out plan on those they are presumably trying to assist. It is a plan that costs government very little, but many thousands of Australians a lot.

Governments at all levels should be actively and QUICKLY working towards increasing our housing stock, and lessening the 'competition' for houses by limiting the numbers of migrants - at least until such time as current citizens are supported by ALL necessary infrastructure.

There is the Low income rentals, through the government Homeswest, Housing commission. This almost gives you are house for life. there is plenty of housing stock unfortunately some people abuse this privilege and don't get screened regularly.

 

[Ezzy]

Yes a rent freeze may sound good in theory to Mr Andrews, who is on a good wage.

Many of my thoughts have already been echoed by members including the fact that landlords would raise rents substantially before any freeze is put into place. Putting a freeze on rent increases would also require legislation to state that this action is immediate to prevent an increase before implementation of the freeze.

How many of those Government Rental Homes are occupied by well off people, business people or rented out to a third party by original tenant while living elsewhere? The tenant named on the Govt Contract collects a nice rent from his/her tenant while paying the Govt what has been set as their rent & collecting a nice profit.

This does happen & has been on previous t.v. news items. What is any State Govt doing to address this issue???

 

[charliechops]

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.

Image by tierramallorca from unsplash

​

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.

View attachment 25900

The median unit rent in June 2023. Image Credit: SDC

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.

im all for the freeze i hope it goes ahead a s a p