The Real Estate Institute of Victoria (REIV) appreciates the Victorian Government’s intent to ensure renters are securely housed but warns its proposed changes to rental legislation announced today will create further pressure on an already endangered rental ecosystem.
Of the six measures announced today, and more expected, none seek to support rental providers, who are crucial to the rental ecosystem and are already facing operating headwinds as a result of rising costs and increasing regulation.
Almost nine-in-ten (90 per cent) rental providers are private investors with the majority owning just one rental property. According to ATO data, the top rental provider occupations are registered nurses, office administrators, primary or secondary school teachers, IT managers, electricians, and sales assistants.
Kelly Ryan, CEO REIV says the government must look at ways to improve investor confidence, a critical ingredient to boost rental supply and build a resilient rental ecosystem.
“While the Government’s recent action to boost housing supply is welcomed, it fails to attract rental providers who are exiting the market at an unprecedented rate. At a time when Victoria needs greater rental supply, these announcements again target a market that has seen constant regulatory change”, said Ms Ryan.
“A good rental ecosystem depends on both rental providers and renters receiving mutual benefit. We urgently need the introduction of incentives that keep rental providers in the market and supplying homes, rather than more change. What we don’t need is more regulation that makes it harder to build investor confidence.”
It has been widely reported that property investors are exiting Victoria's property market at a time when private investment is most needed to address the housing crisis. Between March 2023 and March 2024, the number of active bonds held by the Residential Tenancies Bonds Authority (RTBA) dropped 20,000, an indicator of rental properties exiting the market.
Media Contact:
REIV: media@reiv.com.au 03 9205 6607