Media Release – A RENT FREEZE IN CANBERRA WON’T BENEFIT TENANTS
Release 5 June 2023
REIACT CEO, Maria Edwards says the proposal by the Greens for a rental freeze isn’t the solution to address the current rental crisis in Australia or in particular the ACT, where the vacancy rate has significantly increased and rents are already declining.
The Greens are continuing to call on the government to take immediate interim action on a freeze to rent increases and rent caps in exchange for their support for the Housing Australia Future Fund (HAFF).
“Holding the country to ransom with a ‘one-size-fits-all’ approach ignores the unique economic indicators of each State & Territory and disincentivises long term investment in every jurisdiction, especially in Canberra where there has been a significant turnaround in the market in the past 12 months.”
“We are now seeing landlords having to reduce weekly rents for properties as cost of living pressures impact what tenants can now afford whilst absorbing rapid and sustained increases to interest rates– a double whammy for investors.”
“The priority for local governments needs to be providing more affordable housing options and rental assistance programs that can provide immediate support to tenants where most needed. Ultimately an increase in overall housing supply is key to addressing rental affordability rather than further reducing incentives to invest in Canberra.” Ms Edwards said.
REIACT urges the local Barr Government to mirror the Federal Albanese Government’s position and end the rent freeze speculation creating uncertainty for potential Mum-and-Dad investors who make up a significant portion of landlords in the ACT. Feedback from members shows a growing concern that more investors are seriously considering exiting the Canberra market, leaving many tenants in the worst possible position – out in the cold.
ENDS
