Community
15 October, 2024
Rent caps not the answer
DESPITE increased price pressure on Queensland’s struggling rental community since 2020, the ruling out of rent caps by both major parties in the next term of government has been welcomed by the Real Estate Institute of Queensland (REIQ).
CEO Antonia Mercorella said on Wednesday that the bipartisan agreement evidenced during the leaders debate last week would restore confidence for investors now and in the future and allow government to focus on increasing housing supply.
Queensland Premier Steven Miles had recently refused to rule out rental caps when questioned by the media, drawing concern from investor groups quick to argue against the move.
Ms Mercorella said investors could not be expected to keep bearing the responsibility of housing the majority of Queensland’s rental population in circumstances where their costs were subject to normal market conditions and inflationary pressures, while tenants costs were capped.
Rent caps were “not the answer” and global evidence had demonstrated “the potential negative consequences of such market intervention”.
The Australian Bureau of Statistics reported that rent increased by 14.5 per cent over the last two years.
