Australia’s Labor government has rejected a proposal by the Greens to suspend housing rents across the country, saying it is not actively considering it.
The denial looked like in the greens Demands a nationwide two-year rent freeze and continued policies that limit rent increases to 2% every 24 months.
Finance Minister Jim Chalmers said rising rents were a major part of the inflation problem and the government would focus on improving supply to deal with the housing crisis.
“That’s why we have the Housing Australia Future Fund to build more affordable housing and I’m working with super industries and states to see if we can build more inventory,” he said. said.
Moreover, Prime Minister Anthony Albanese was unsure how the Green party’s proposal would work.
“It’s not clear to me how that could be achieved, except for the nationalization of property,” he said.
Potential impact of rent control policies on housing supply
Economists said rent control policies could have a negative impact on the supply of new housing.
Independent economist Saul Esreik said the Green Party’s proposals are likely to discourage investors, who may switch to other forms of investment if the rental market fails to deliver solid returns. said to be expensive.
He also said more investors could sell their properties if the government introduced rent regulations, which could increase housing supply and reduce demand in the rental market.
“However, previously disgruntled homebuyers who may purchase properties from landlords who choose to withdraw from the market may end up wealthier than most renters.” Esreik said in a comment obtained by AAP.
At the same time, Esreik said that increasing the supply of rental housing is the most effective way to address unaffordable prices, and that government investment in social and affordable housing plays a key role in that approach. said that it is possible to fulfill
Rent freeze unlikely to solve long-term housing shortage
Meanwhile, Hayden Groves, chairman of the Australian Real Estate Association, said the rent freeze would not alleviate the housing shortage in the long term.
“The real estate industry, especially property managers and owners, has implemented a moratorium on rental evictions over the last two years of the COVID pandemic.” groves said.
“At the same time, rents are rising in areas chronically undersupplied and will only get worse if not addressed.”
The Greens supported the proposal, citing a rental freeze implemented during the COVID-19 pandemic and the use of rental controls around the world.
“Rent is out of control. Millions of Australian renters are struggling to pay their rent,” said Greens housing spokesman Max Chandler-Mather.
“And unless the government doesn’t want to see more families sleeping in their cars, they should do their job now to stop this crisis from devolving into a national tragedy. We must act.”
Chandler-Mather also said rent management should be seen as part of a comprehensive strategy that includes measures such as introducing a vacancy tax, eliminating negative gearing and capital gains exemptions, and building public and social housing. said it is.
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Alfred Bui is an Australian reporter based in Melbourne, focusing on local and business news. He is a former small business owner and holds his two master’s degrees in business and business law. Please contact [email protected]