Confusion reigns over Premier’s rent cap proposal
No more than one rent increase per year has been suggested by the Queensland government after pushback from real estate groups to any form of cap.
The Government's suggested rent caps policy has enraged groups like the REIQ.
Limiting rent increases to once a year and broadly in line with inflation has been called for by advocacy groups reporting jumps of $100 a week or more among some renters.
Premier Annastacia Palaszczuk said a cap was seriously being looked at earlier this week, prompting swift criticism by the Real Estate Institute of Queensland.
Health Minister Yvette D’Ath on Thursday said there had been a lot of speculation about what a cap might look like.
“What the premier has put out there is one proposition which is, should we be considering not allowing property owners to increase rents multiple times in a year causing significant rental stress on households.”
“There’s a lot of people couch surfing and living rough right now that we do have to seriously consider all of these options.”
D’Ath did not mention limiting the amount rent could be increased.
Rents have grown at a faster rate in Queensland than any other state or territory, with low-income and regional households the hardest hit, according to a report released earlier this week.
Some restrictions exist in Queensland, such as limiting rent increases to once every six months, but tenants generally don’t have much room to challenge amounts if they’re in line with the market.
The Liberal National opposition has accused the government of giving investors “mixed messages” with a knee-jerk reaction policy.
Opposition leader David Crisafulli said a lack of stability would deter investors and ultimately result in less market supply
Tenants Queensland CEO Penny Carr previously described restricting increases to just above the consumer price index as a mild proposal unlikely to impact investors’ decisions.
“This proposal isn’t suggesting that rents can’t be increased…you would call it rent stabilisation,” she told AAP on Tuesday.
“Rather than being volatile and subject to the market conditions, which at the moment are really pushing opportunities to raise rents incredibly, it would just smooth those rent increases out.
“It makes it much more predictable for renters, especially those on tight incomes.”
