In this article, we will explore the limitations imposed on rent increases and potential housing reform ideas aimed at curbing urban sprawl.
Landlords have expressed enthusiasm for the “exciting” rent hikes resulting from the housing shortage and historically low vacancies.
However, they have criticized proposals to regulate prices in order to ease the burden on tenants, dismissing them as “ridiculous.”
With interest rates on the rise and perceived market-impeding rules, the Australian Landlords Association recently conducted a webinar titled “Is it Still Worth Being a Landlord?”
For further insights on this matter, continue reading the article.
Daniel Andrews Rent Freeze And Cap Increase
In an effort to offer better security to young Victorians who face difficulties in entering the housing market, substantial housing reforms have been proposed.
These reforms would allow landlords to raise rent only once every two years and may also include a maximum limit on the increase.
Premier Daniel Andrews is pushing for limitations on urban development at Melbourne’s fringes.
He has pledged a zoning overhaul to promote higher density and the construction of high-quality homes in the middle suburbs, ultimately providing tenants with increased stability and security.
According to Andrews, every possibility is being considered to ensure even stronger protections for tenants in the future, as reported by The Sunday Age.
“Numerous Victorians are facing rent difficulties, forcing them to relocate far away from their workplaces.
The continuous creation of new suburbs appears futile.
Instead, there is a pressing need to construct more appealing housing, adhering to the highest design standards.
Although Andrews recently mentioned a significant planning revamp, details on measures to aid renters were absent.
According to an undisclosed senior government source involved in negotiations, there is contemplation of limiting landlords to one rent increase every two years, an improvement from the current 12-month restriction in most cases.
However, they have requested anonymity due to the lack of authorization to disclose specific details publicly.”
Treasury officials are currently pondering the implications of pairing the new time limit with a rental cap.
They are exploring various models, and one option under consideration is the approach employed in the ACT.
In this model, rent increases are restricted to 11% of inflation.
The ACT has experienced rental increases below the average due to current measures.
However, there are concerns that linking rent increases to inflation might lead to steeper climbs in rents during periods when tenants are already heavily impacted by the rising cost of living.
A government official chose not to disclose additional information about the plans and housing renovation.
The focus on renters in the reform package comes as a response to a prolonged decline in housing affordability, exacerbated by substantial overseas migration, a scarcity of housing supply, and more recently, escalating construction costs, increasing interest rates, and the collapse of building enterprises.
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