1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar




Property News

Capped rental rates "detrimental" to residential market

December 02, 2011

A recent proposal put forward by politicians aimed at curbing residential property rents would do more harm than good, according to one leading expert.

In a press release issued on December 1, the president of the Real Estate Institute of Australia (REIA) Pamela Bennett said that the implementation of such a scheme would have a number of negative impacts on housing affordability in the long term.

Bennett asserted: "To cap rents in the private rental market would be counterproductive to the objectives of improving affordability.

"Rather than capping rents in the private rental market, we need to be focusing on increasing supply in both the public and private rental market."

She then explained that mandatory pricing structures would reduce the supply of rental dwellings while in place - and would cause prices to rise exponentially once the measures were lifted.

"The proposal is not sustainable and when it is reversed, rents will soar. This is an extremely important issue and one that should not be taken lightly," said Bennett.

Under the initiative, the government would "monitor the rent costs in the private rental market" and apply pricing mechanisms in response to environmental fluctuations.



Related Articles

Residential growth refusing to slow

New details in residential housing growth mean the economy's strength will continue in the ...
read more

Former industrial precincts to become residential hubs

The New South Wales government has announced plans to turn two former industrial areas in north ...
read more

Perth city budget raises fees but aims to revitalise city

The City of Perth budget for 2014/15 was passed on June 25, setting the stage for the ...
read more

Latest Articles

How strong is the NSW property market?

When it comes to making a purchase in the property market, it seems hard to beat the strength of ...
read more

Building booms across many sectors

There are numerous indicators of strength in the housing industry, and one strong signal of future ...
read more

Cash rate at a standstill

One crucial driver of housing demand is the official cash rate from the Reserve Bank of ...
read more