No relief in sight for NSW renters but Queensland takes ‘serious’ look at caps

Renters hoping NSW will follow Queensland’s lead and consider rent caps can dream on. Neither of the major parties likely to form government in NSW will follow Queensland Premier Annastacia Palaszczuk in taking a “serious” look at limiting rent increases as a way to ease stress in the housing market. Both said rent caps did not form part of their housing policies. 

“NSW Labor understands renters are under increasing pressure and have a clear and comprehensive plan to reform the rental market,” Labor’s better regulation spokesperson Courtney Houssos said. 

“The best way to solve the issue of rising rents is to ensure there is more housing available in the private rental market.”

Labor aims to create a rental commissioner to “advocate for renters”, ban secret rent-bidding and mandate that 30% of homes built on government land be set aside for social and affordable housing. 

The Coalition’s Fair Trading Minister Victor Dominello has said reforms to increase housing supply and prohibit solicited rent bidding have already been implemented by the government. 

“Whether you are a university student, a young family or retiree, these reforms will strengthen the rights of renters,” Dominello said in early March when the Coalition launched its policy plan for renters. 

Proposed reforms the Coalition will implement if reelected include extending notice periods for the end of fixed-term leases and introducing an optional standard lease agreement with three- and five-year terms. 

Both Labor and the Coalition have promised they would draft a set of reasonable grounds for ending leases, and allowing renters to transfer their bond from one property to another.

The Greens have called for an “immediate freeze on rent” and a ban on unfair evictions.

“This immediate rent freeze will press pause while we implement rent controls in NSW so that people are relieved from housing stress,” its housing platform says. 

Palaszczuk’s comments on Monday came after a new report by the Queensland Council of Social Service rang alarm bells about the state’s social housing waitlist. Of the 150,000 households under housing stress, about 100,000 would qualify for social housing, and about 27,000 are on a waiting list that takes an average of two years to move through. 

Median rents rose 80% in the city of Gladstone, 51% in Noosa and 33% on the Gold Coast in the past five years, the Australian Associated Press reported. 

“I understand that this is a big issue for families,” Palaszczuk said. “They are constantly being faced with huge increases in rent. We’re looking very seriously at how a rental cap can be put in place.”

NSW is facing a similar crisis. A recent Reserve Bank of Australia report found that advertised rents in Sydney had increased by more than 10% over the past five years, and vacancy rates had declined.

The federal Greens said on Tuesday they had launched a door-knocking “blitz” targeting Labor-held seats in Queensland, Victoria, Tasmania, the ACT and Western Australia, “making it clear to Labor there will be severe electoral consequences if they fail to tackle the housing crisis and give real relief to renters”.

“There are a lot of people out in the community angry that Labor can find $368 billion to spend on nuclear attack submarines, but can’t find a single extra cent to spend directly on public and affordable housing,” federal Greens housing spokesman Max Chandler-Mather said.