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

Things to look for when renting

Looking for a rental property to call home? There are some important things to keep in mind to ...
read more

Bright tips for lighting rooms

Your residential property is a place you can relax at the end of the day and entertain friends, so ...
read more

Garden trends in bloom

Whether you're a first time buyer or are looking to spruce up your existing home, a beautiful ...
read more

Latest Articles

Is it time for a change?

Is your current home not quite right for your needs? Whatever the reason, you might sell your ...
read more

Growing home lending figures in Western Australia highlight construction rise

Anyone interested in buying land in Western Australia and building their own residential property ...
read more

Calls to keep stamp duty exemption for first home buyers in Western Australia continue

The Real Estate Institute of Western Australia (REIWA) has stood up or the rights of first home ...
read more