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

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

Plans in motion for 'Brisbane's backyard'

Walkabout Creek will see a $2.5 million investment from the Queensland government, according ...
read more

Latest Articles

Increased construction figures across New South Wales highlight investment strength

Buyers looking for a great area to consider land investment and property construction in the near ...
read more

Regional Victorian home values increase significantly during last 12 months

Regional Victoria has seen house prices rise again during the last quarter, with new data ...
read more

RP Data: Quarterly rental data highlight slowing capital market

Owners of investment property could be interest to see the latest statistics from RP Data, with the ...
read more