Here we discuss the limits on rent increases and the ideas being considered for housing reform to stop urban sprawl. Landlords have praised the “exciting” rise in rents caused by a housing shortage and record low vacancy, while criticizing proposals to regulate prices to ease pressure on tenants as “ludicrous.” In light of rising interest rates and the rules they claim are driving them out of the market, the Australian Homeowners Association hosted a webinar on Tuesday titled “Is it still worth owning?” Continue reading the article to learn more about this topic.
Daniel Andrews Rent Freeze and Cap Increase
Under landmark housing reforms aimed at providing security for young Victorians who have been locked out of the market, landlords could only raise rents once every two years and could be subject to an increase cap. Prime Minister Daniel Andrews has called on Victoria to rein in urban development on Melbourne’s outskirts, pledging that a planned zoning review will increase density and high-quality housing in the central suburbs and provide greater security for tenants. “Everything is on the table,” Andrews told The Sunday Age. “Our goal is to provide even better protection for tenants.
“Too many Victorians are struggling with their rent and have to move away from their workplaces. The constant creation of suburb after suburb is meaningless. More desirable apartments must be built, to the highest design standards. Although Andrews recently said the plan review would be one of the largest in state history, he did not explain what measures would be introduced to help tenants. A senior government source familiar with the negotiations said it was considering limiting landlords to a rent increase every two years, up from the current 12-month limit for most situations, but asked to remain anonymous as they were not authorized to disclose details publicly.
The effects of combining that new time limit with the lease cap is another thing Treasury officials are considering. Various models are considered, including one used in the ACT, where rent increases are capped at 11% of inflation.
As a result, the ACT has seen below-average rent growth, but there are fears that rent growth with inflation could rise further at a time when renters are hit hardest by cost-of-living pressures. A government representative declined to provide further details on the planning and renovation of homes. The reform package’s emphasis on renters comes after a long-term decline in housing affordability, exacerbated by major out-migration, lack of supply and, more recently, rising construction costs, rising interest rates and the collapse of homebuilders.
Categories: Trends
Source: HIS Education