The State Government has recently released its housing statement, outlining a 10-year plan for the industry, claiming it will boost housing supply and push prices down. The blueprint details an ambitious goal to address the housing needs in Victoria and support the projected population explosion. Centered on supply shortfall, the objective is to construct 2.24 million new homes by the year 2051, along with an annual target of 80,000 new homes for the coming decade.
The statement is organised into five sections, each containing various initiatives aimed at bolstering housing availability across all market segments. These segments are entitled:
- Good decisions, made faster
- Cheaper Housing, Closer to Where You Work
- More Social Housing
- Long Term Housing Plan
- Protecting Renters’ Rights
What about renters rights?
Now whilst all of these make an interesting read, we were particularly interested in what was being put forward in relation to protecting renters rights. Victoria already has some of the strongest rental protections in the country with more than 130 reforms introduced in 2021 including minimum standards, bond reforms and annual rent increases. Reactions to the latest overhaul have ranged from exceptionally positive to harsh criticism.
See here what the Government has outlined in the Housing Statement:
Restrict rent increases between successive fixed-term rental agreements
If agents or RRPs are issuing a new lease after they’ve evicted previous renters on their first fixed-term one, they’ll have to offer the property at the same rent for at least 12 months. This is aimed at reducing the incentive for some RRP’s to churn through renters by evicting them purely to increase rent, and give renters more certainty over their living arrangements.
Ban all types of rental bidding In 2021
It is illegal for real estate agents or rental providers to solicit or encourage higher offers than the advertised price of a rental property. In this tight rental market, more and more applicants are offering incentives to try and give their applications a competitive edge. The aim is to ban all types of rental bidding, make it an offence to accept bids, and introduce tougher penalties for agents and landlords who break the law.
Establish Rental Dispute Resolution Victoria
With more renters in Victoria than ever before, the number of rental disputes has increased, too. VCAT should be a last resort for renters and rental providers, not the first stop. With Rental Dispute Resolution Victoria being established, renters, agents and RRP’s can resolve tenancy disputes over rent, damages, repairs and bonds, in a faster, fairer and cheaper way – freeing up VCAT for more serious or complicated matters.
Introduce a portable rental bond scheme
The government intends to build a portable rental bond scheme, where renters can carry their rental bond from one property straight over to another, rather than having to pay a new bond each time. Aimed at easing the financial burden on renters when they move. Apparently this will create a more efficient rental market – which is good news for both renters and rental providers.
Extend notice of rent increase and notice to vacate periods to 90 days
Rent increases and eviction notices can be incredibly distressing for renters dealing with financial stress, finding a new place to live, budgeting, packing, and coordinating logistics – all while dealing with the emotional stress of their changing situation. The aim here is to give renters more certainty, and ease stress evicted renters face, by extending notice of rent increases and notice to vacate periods to 90 days.
Introduce mandatory training and licensing for real estate agents, property managers owners corporation managers and conveyancers
Every real estate transaction involves significant financial investments and legal complexities, and renters rely on agents to provide accurate information and advice. Mandatory continuing professional development for real estate professionals will mean better skills, ethical conduct across the industry, and give renters peace of mind.
Make rental applications easier and protect renters’ personal information
Applying for a rental property should be a fast, fair, straightforward process without renters facing a field of different demands for information, records or documents. Aim here is to standardise rental applications, saving renters time and providing them a clear expectation of the application process. Also limiting information kept on file, and for how long, to better protect renters’ privacy and data.
Deliver a Rental Stress Support Package
Right now, around five per cent of Victorian households are facing serious renting stress – meaning they’re at risk of being evicted because they can’t afford to pay their rent. There are a range of organisations who help renters stay in their homes, providing legal assistance, financial information and advice, and advocacy services. Th government aims to deliver a $2 million Rental Stress Support Package through the Victorian Property Fund. The package will help address the high demand for rental assistance these organisations are seeing, while working to boost social, affordable and market housing supply across the state.
You can read the full Housing Statement HERE or contact one of our friendly property managers.
