Proposals cloud positive moves from Andrews Government on affordable housing: REIV's Gil King

Proposals cloud positive moves from Andrews Government on affordable housing: REIV's Gil King
Proposals cloud positive moves from Andrews Government on affordable housing: REIV's Gil King

GUEST OBSERVER

The Andrews Government this week announced changes to long-term lease provisions, including a new long-term standard tenancy agreement for leases of more than five years.

The Real Estate Institute of Victoria (REIV) said these changes are being undertaken in the midst of a major review of Victoria’s rental sector.

While the REIV generally supports the new provisions for long-term leases, the entire private rental sector is on the brink of significant change which will heavily affect landlords and other stakeholders.

The industry is working with Government on major reforms to the Residential Tenancies Act at present, and looks forward to continuing to do so.

Victoria’s population is growing by 100,000 new residents each year and the private rental sector needs to meet this need.

The review and the Government’s current options paper ‘Heading for Home’ will have a significant impact on the sector, affecting both property owners and tenants.

The REIV has undertaken a survey of landlords across Victoria with four in five planning to significantly increase rents if the proposals are adopted.

A further 17 percent of landlords have said that they will exit the sector if the changes proceed.

The reforms that are being proposed include:

  • Changes to notice provisions around ending a lease. Tenants are only required to provide 28 days’ notice of their intention to leave a property, while landlords may lose their right to terminate a lease altogether.
  • Removal of the landlord’s right to consent to, or refuse, pets.
  • Allowing tenants to make non-structural modifications to rental properties without landlord consent or permission. This may include repainting an entire property, concreting the backyard or reconfiguring built-in robes.

The changes will have an overall negative impact on the Victorian rental market, especially on those who can least afford it.

Gil King is chief executive officer, REIV, and can be contacted here.

Tags: 
Leasing Market

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