New rental reforms proposed by the Allan Labor Government have sparked fears for the future of Gippsland’s already dwindling rental stock.
The reforms, which include preventing landlords from evicting a tenant at the end of their fixed-term lease without cause and capping lease break fees to no more than 4 weeks, have been touted as greater protection for renters’ rights.
But concerns have been raised that a failure to strike a balance between landlord and renter’s rights will drive more landlords and rental properties out of the market.
The Nationals Member for Gippsland South, Danny O’Brien said while he supports protecting the rights of renters, there will be little benefit to Gippsland renters when they are not able to find a home to rent in the first place.
“There is a perception the government seems to embrace that landlords are rich and greedy with multiple rental properties in their portfolio. But the reality is that most of the landlords in Gippsland and across the state are mum and dad-type investors who have used their savings or superannuation to invest in and help keep our rental market afloat,” Mr O’Brien said.
“According to the Australian Tax Office, the top rental provider occupations are registered nurses, office administrators and primary or secondary school teachers.
“These reforms, in addition to a suite of new land taxes are going to leave landlords questioning their investment and risk them leaving the market in favour of short-term rentals like AirBnB.
“A quick search online will show that many towns in my electorate are already being impacted by this growing trend as property owners understandably seek maximum return on their investment.”
Mr O’Brien said that at the time of writing there were more than 20 full-houses listed on AirBnB in Sale alone.
“Under the Allan Labor Government there have been no incentives for landlords to offer their homes to long term renters. We need a State Government that can find the balance and ensure both renters and landlords are protected.”
Mr O’Brien said the demand for rentals is already sky high across Gippsland South with limited social housing available to those who are otherwise unable to find a home.
“Despite Labor’s claims that the Big Housing Build Program would be the answer to all problems, social housing has only reduced in Gippsland South under Labor with more houses decommissioned than built.
“Indeed, it is not just my electorate, but all of Gippsland that has seen social housing stock dwindle under Labor with data released by the Department of Families, Fairness and Housing* earlier this year confirming social housing stock across the six local government areas that make up Gippsland decreased from 4,874 in 2015, to 4,834 as of 30 June 2023.
“These figures are particularly alarming when you consider that the social housing waitlist has also doubled in this time.”
Mr O’Brien said a real plan was needed to address the rental and social housing shortages across Victoria.
“These reforms will likely drive landlords away from investing in rentals in Victoria and only serve to exacerbate the issue.
“Labor can’t manage housing, can’t manage money and Gippslanders are paying the price.”