REINSW responds to NSW Greens rental policy
10 February 2015
Housing policy released by NSW Greens candidate Jenny Leong shows a clear lack of understanding of the property market, according to the Real Estate Institute of New South Wales.
The candidate for the newly drawn seat of Newtown proposes to cap rent rises at the rate of inflation or the consumer price index, and allow landlords to impose only one increase in rent per year.
REINSW President Malcolm Gunning said the policy released on Thursday (5 February 2014) was misguided.
“It is a narrow-minded view based on one suburb that is one of the most popular in Australia,” Mr Gunning said.
“The rental market is no different to any other market; it is driven by supply and demand. The rental market can be very fluid and open in high demand areas, where tenants drive the rent up by outbidding each other. In not so popular markets, tenants ask for lower prices; they are very savvy and know they can negotiate terms.
“If we move to a regulated environment, tenants would lose the ability to negotiate and as a result mum and dad investors would suffer rather than big business as suggested by the Greens’ policy.
“It needs to be clearly understood that people who buy rental properties are investors. They expect to make both income and capital returns on their investments. If the market becomes even more regulated than is already is, those investors will go elsewhere and that will be bad for tenants.
“The policy also does not reflect a lot of areas throughout NSW that are struggling. Rent control would take us back to the dark ages.”
Under the NSW Greens policy landlords would not be allowed to evict renters without a valid reason, however Mr Gunning said that this is already in place.
“Protections for tenants are already in place. They have clear rights and can go to NSW Fair Trading for dispute resolution,” Mr Gunning said.
- Hunt for Queen's Wharf developer commences
- Queensland unit and townhouse sales climb
- Magazine seeks writers for online column in U.S.A, U.K., Asia & Australia. Writers wanted
- Perth median house price at new record
- Don’t let a bad credit score ruin your chances of a home loan
- The Importance of Communication for Business Success
- UK Innovator Visa: Getting Endorsement
- The Workers Launch Balmain's Biggest Laugh Free Live Comedy
- Surplus signals time for NSW Government to cut stamp duty
- Businesses
- Katter calls for better delivery of drought assistance
- Respected local restaurateurs are the icing on the Tweed River Art Gallery
- The Global Forest Industry This Quarter
- Lonely Planet names Kimberley as world’s second top tourism region for 2014
- Jazz Degustation + The Cellar Jazz Jam
- Record harvest ensures city fruit and veg supplies
- Progress for Canning Basin exploration
- ACCC action after chicken companies made false claims
- Vegan Australia says no to Bacon Week
- Commercial gas expansion boosts WA economy