The rent’s too damn high - relieving the stress on renters
Renters are experiencing unprecedented rent hikes and are under enormous rental stress.
Rents have risen hugely in the last 12 months at four times the increase in wages and at a time when the rise in cost of living expenses is unprecedented. Landlords have got away with increasing rents unchecked for far too long.
The Greens believe that housing is a human right, and that government has a responsibility to ensure everyone has the right to a home they can afford. Renting should be about providing someone with a place to call home, not a way for wealthy investors to make more profit.
We are committed to an immediate rent freeze to halt the day-to-day stress on renters fearing a letter from their landlord or real estate agent. But we know a freeze will not go far enough. This immediate rent freeze will press pause while we implement rent controls in NSW so that people are relieved from housing stress. The Greens’ call for a rent freeze could have saved Sydney renters over $7,000 if it was implemented two years ago when it was first raised.[1]
We will establish an independent body to control rents , regulate increases and have oversight of dodgy landlord practices, so that renters can afford a place to live.[2] And we’ll give more rights to renters and stop unfair evictions.
We need to regulate the rental market to protect renters in the same way we regulate and set maximum price increases in a range of essentials like water, energy, public transport and local government rates,[3] and regulate the labour market by setting minimum wages.[4] In February 2023, the NSW Tenants Union expressed support for a form of rent control being introduced in NSW.[5]
During the pandemic we saw that governments can take quick and substantial action in the housing market - we need that action right now.
The Greens plan to address the housing and rental crisis in NSW in the long term includes a huge investment in affordable, sustainable, and accessible rental properties.[6]
The Greens will:
- Cut rents and ban unfair evictions
- Immediate rent freeze when the new parliament sits
- Establish an independent body to set rent controls
- Put limits on the amount and frequency of rent increases
- Increase oversight of dodgy landlord practices, including shoddy or neglected maintenance
- Expand hardship provisions to help renters get relief immediately
COMMUNITY NEED
The rental system in NSW is cooked and set up to deliver investors profits and not renters a place to call home. Renters are at the mercy of the market as ruthless landlords maximise their profits, largely unchecked.
One third of the people in NSW are renters. They are treated like 2nd class citizens with a huge power imbalance between them and landlords and real estate agents. Far too many are at breaking point and in rental stress as they’re being forced to pay a lot more than 30% of their income in rent. This situation can’t continue.
The Greens will fix the rigged rental system that allows greedy landlords to get away with huge rent increases and unfair evictions.
We will end the free market rent frenzy that’s overwhelming renters.
At a time when more people are renting than ever before, and for longer, we need to fix the conditions that have made chronic insecurity part and parcel of renting.
Without rent freezes, rent caps and rent regulation, rents will just continue to rise unchecked and renters will not be able to afford a place to live.
IMMEDIATE TWO YEAR RENT FREEZE AND BAN UNFAIR EVICTIONS
In July 2021 the NSW government froze rents for COVID-impacted commercial lessees. Rent could not be increased between 13 July 2021 and 13 March 2022.[1] In addition to this, some measures were put in place to assist private COVID-impacted tenants, including concessions for landlords who negotiated rent reductions and a limited freeze on evictions as well as some other relief measures.[2] These steps, although inadequate, showed that governments can take quick action during a crisis to control rents and stop evictions.
We are in a rental crisis now and protections for renters should be urgently implemented.
An immediate two year rent freeze will stop rents continuing to rise while a radical, and much needed, reshaping of our rental and housing system is developed and implemented.
The Australian Greens released data last August which estimated that renters across Australia would have been $10.7 billion better off if their call for a rent
freeze had been implemented nationwide in the previous 12 months.[3]
Sydney renters, who saw their rents increase by 28.6% in that 12 month period, would’ve been over $7,000 better off on average, had a rent freeze been in place.[4]
Real wages are predicted to continue to decline[5] and this combined with a shortage of affordable rental properties means that rents will continue to skyrocket and more and more people will become homeless.
Unfair, no grounds evictions are also contributing to the soaring cost of rent, allowing ruthless landlords, dodgy real estate agents and big investors to boot tenants out for no good reason.
Tenants who meet all of their responsibilities and pay their rent on time can be evicted on a continuing lease without any reason – including if a landlord believes that they can get more rent from a new tenant.
Freezing rents and banning unfair evictions now is an important interim measure to stem the spiralling crisis and provide relief and certainty to renters until the broader reform is implemented.
INDEPENDENT BODY TO CONTROL AND REGULATE RENTS
Even though some 33% of people in NSW are renters[6], they have few rights and very limited options regarding rent increases and housing security.[7]
The ACT has a form of rent control which stops excessive rent increases and requires the landlord to make a case for any increases above the prescribed rate.[8]
Renters had better rights and rents were controlled and regulated in NSW and nationally at different times throughout the 20th century.[9] We can do it again.
The Greens will establish an independent body to regulate and control rents so that they are linked to cost of living and inflation rates. Increases would be limited in frequency and also to a set percentage of a new base rate for the property.
In NSW there still exists a small cohort of renters who are ‘protected tenants’ and have rents controlled (but still don’t have adequate other tenancy rights) however no new protected tenancies have been created since 1 January 1986.[10]
More generally, rents are partially regulated by the NSW government in terms of the number of rent increases that can occur each year and within a fixed term lease.[11] But these regulations, including disputing rent increases[12] are completely inadequate given the housing crisis and chronic lack of affordable rents - and the biased laws that encourage landlords to evict people for no reason.
We want to see much stronger rights for renters and legislation to ensure that rent increases are regulated, especially outside fixed-term lease periods (during periodic tenancies or between fixed-term leases).
LIMITS ON THE AMOUNT AND FREQUENCY OF RENT INCREASES
The independent body will be empowered to set limits on the percentage increase, amount, and frequency of rent increases.
This will ensure that renters have stronger rights to challenge rent increases while requiring landlords to prove why they seek to increase rents over any prescribed limits.
As noted above, different states in Australia have various forms of limited rent regulation. In NSW, tenants covered by the Residential Tenancies Act with periodic agreements, can only be subject to rent increases once in a 12 month period after the minimum 60 day written notice is given to the tenant.[13]
But crucially, there is no regulation of the amount or limit of any rent increase. And if tenants raise concerns about the increase, they are at greater risk of an unfair no grounds eviction.
Renters in NSW frequently report being too fearful to ask for repairs because of the ongoing threat of eviction or rent increases. The Greens will ensure that maintenance standards and oversight are also regulated.
Renters must have stronger protection from greedy landlords and agents and massive rent hikes.
OVERSIGHT OF DODGY LANDLORDS AND REAL ESTATE AGENTS
The current approach of reporting complaints to Fair Trading does not go far enough to address the scale of systemic issues faced by renters needing maintenance work.
The rapid increase in third-party platforms requiring renters to share too much private information and putting all of the power in the hands of real estate agents and big investors, needs to stop.
The independent body established by The Greens to control rents will also play an oversight role to clamp down on unsafe and exploitative practices that have been plaguing the private rental market in NSW for too long.
EXPAND HARDSHIP PROVISIONS
The NSW government’s Private Rental Assistance scheme [14] provides eligible renters with financial support for a range of rental expenses to set up or maintain a private rental tenancy.
However, the eligibility for this scheme is quite restricted and the financial assistance that’s available is limited both in terms of the length of time it’s available and the amount of assistance offered, especially with the massive increases in rents across the board.
The Greens will expand this scheme to help renters who are facing unprecedented increases in their rents.
This extension of this scheme would remain in place until more effective rent controls and stronger regulation of the sector is implemented.
IT’S BEEN DONE HERE BEFORE
Australia has a strong history of tenants and community groups advocating for regulation and control of rents and of state and federal parliaments responding with ongoing legislation to make them affordable to protect renters.
The Tenants’ Union of NSW has documented some of the early history of tenant advocacy.[15] ‘The first record of a tenant organisation in Australia was the NSW Rent Payers' Association, which existed from 1910 to 1916. They campaigned for and won Fair Rent legislation, and represented tenants before the Fair Rents Court, as a tenant advocate would today before the NSW Residential Tenancies Tribunal.’
From 1916, federal and state governments legislated to freeze and control rents. Housing was considered an essential commodity which had to be protected to stop “profiteering in essential commodities.[16]
Rent control measures were introduced at various times of economic crises and frozen during the second world war at 1939 levels with the Fair Rents Act 1939.[17]
OVERSEAS EXAMPLES
Germany and some other European countries, including France, have strong government control and regulation of the rental market which includes rent increases, rent caps, rent subsidies and strong limitations on evictions.[18]
Germany legislated rent control (Mietpreisbremse) nationally in 2015 and pegged rent increase to no more than 10 percent above the comparative rents set by the regional rent index.[19]
New York State has regions which have rent regulation programs known as rent control and rent stabilisation. Rent control goes back to the post 2nd World War era and rent stabilisation[20] is more recent. In 2019, legislation was passed allowing any locality in New York State to enact rent stabilisation if the vacancy rate fell below five percent.[21] In Sydney the vacancy rate at Jan 2023 was 1.6% and in Melbourne it was 1.1% - with rates in 2022 at only 3%.[22]In NSW regions the vacancy rates throughout 2021-2022 were all below 3%.
In October 2022, Scotland’s Tenants’ Rights Minister initiated legislation to freeze rents and ban evictions and is now working to set rent caps and continue the ban on evictions.[23]
Ontario froze rents in 2021 and set the maximum allowable rent increase rate at 1.2% in 2022.[24]
HOW THE GREENS HAVE BEEN FIGHTING FOR RENTERS RIGHTS
Since establishing a Renters Rights portfolio in 2015, the Greens have consistently put renters rights on the agenda.[25]
During this time, we have consistently stood up for the rights of renters while the Liberal/National Government and NSW Labor opposition have sided with big investors and developers.
During the pandemic it was the Greens who:
- Ensured there were provisions in the COVID emergency legislation to provide protections to renters
- Worked closely with public housing communities to offer support and ensure there was no harsh lockdown imposed on high density towers like the Victorian Labor Government implemented.
- Advocated for the rights of international students and others who were not citizens to have access to housing and other services.
In the last 12 months, it was the Greens who:
- Called on the Premier for a rent freeze and again pushed for an end to no grounds evictions [26]
- Introduced a bill to implement an immediate rent freeze for NSW renters
- Introduced a bill to end unfair, no grounds evictions, which was blocked by both the Liberal National government and the Labor opposition
- Called on the NSW parliament to better protect renters’ privacy and data[27]
- Introduced a Bill for a moratorium on evictions and rent caps for flood impacted renters[28]
- Called out the Liberal National government’s failure to provide adequate affordable housing[29]
THE HARD STATS OF THE RENTAL CRISIS
- In NSW 32.6% of the population are renting[30]
- Figures from August 2022 showed that the combined capital city rental listings were down by 26.3% and the lowest they’d been since February 2003.[31]
- The number of available affordable rental properties is almost negligible.[32]
- Even in times of higher rental availability, rents were still too high[33]
- Rents have risen four times faster than wages and inflation - in some cases by 30% since the start of the pandemic
- The average weekly rent for houses and units increased by 15.3% in 2022[34] and the average renter paid close to $5000 more for their home in 2022 than in 2021[35]
- In Sydney, house rents jumped 19% since the pandemic began[36] which is way beyond annual wage growth - more than five times the wage increases in this time[37]
- In regional NSW, tenants are facing displacement and homelessness due to rents spiking 30 per cent since 2020[38]outstripping average annual wage growth up to seven times in the past year in the hardest-hit council areas
- Renters in regional NSW have been doubly impacted by the lack of affordable housing options for those displaced by climate disasters[39] and the massive increases in short term holiday accommodation[40]
- In 2022 some 640,000 people were in housing stress nationally[41]
- More than half of all NSW MPs own two properties or more, and one member owns twelve residential properties[42]
[1]www.greens.org.au/news/media-release/greens-rent-freeze-plan-couldve-sa…
[2] This initiative is one part of a suite of housing measures including a massive investment in affordable housing, that the NSW Greens will progress to end the housing crisis.
[3] www.ipart.nsw.gov.au/Home/About-IPART/FAQs
[4]www.fairwork.gov.au/tools-and-resources/fact-sheets/minimum-workplace-e…
[5]www.theguardian.com/australia-news/2023/feb/04/sydney-renter-hit-by-35-…
[6] https://greens.org.au/nsw/makehousingaffordable2023[1]www.smallbusiness.nsw.gov.au/get-help/covid-19/commercial-leases-and-co…
[2]www.fairtrading.nsw.gov.au/resource-library/publications/coronavirus-co…
[3]www.greens.org.au/news/media-release/greens-rent-freeze-plan-couldve-sa…
[4] Ibid
[5]www.smh.com.au/politics/federal/it-will-take-time-real-wages-in-the-dol…
[6]www.abs.gov.au/articles/snapshot-nsw-2021
[7]www.betterrenting.org.au/rent_regulation_around_australia
[8]www.justice.act.gov.au/renting-and-occupancy-laws
[9]www.parliament.nsw.gov.au/researchpapers/Documents/protected-tenancies-…
[10] https://www.tenants.org.au/resource/protected-tenants-infosheet
[11]www.fairtrading.nsw.gov.au/housing-and-property/renting/during-a-tenanc…
[12] Ibid. Renters can dispute ‘excessive’ rent increases via the NSW Civil and Administrative Tribunal, but it only considers comparable rents and the landlord’s expenses.
[13]www.fairtrading.nsw.gov.au/housing-and-property/renting/during-a-tenanc…
[14]www.facs.nsw.gov.au/housing/help/ways/private-rental-assistance
[15]https://files.tenants.org.au/about/unfinished-business-web.pdf
[16]www.parliament.nsw.gov.au/researchpapers/Documents/protected-tenancies-…
[17] Ibid pg 2 of 14
[18]www.brookings.edu/essay/Germany-rental-housing-markets/
[19]www.conny.de/en/rent/rent-control/information
[20] Rent stabilisation provides protections to tenants besides limitations on the amount of rent increases. Ibid.
[21] https://hcr.ny.gov/rent-control
[22]www.corelogic.com.au/news-research/news/2023/pressure-on-australias-ren…
[23]www.refinery29.com/en-gb/rent-increases-capped-in-scotland
[24] https://news.ontario.ca/en/bulletin/1000340/ontarios-2022-rent-increase…
[25] www.jennyleong.org/tags/renters_rights
[26]https://greens.org.au/nsw/news/media-release/nsw-renters-need-rent-free…
[27]www.parliament.nsw.gov.au/la/papers/pages/notice-tracking-details.aspx?…
[28]www.jennyleong.org/greens_introduce_bill_to_protect_flood_affected_rent…
[29]www.parliament.nsw.gov.au/Hansard/Pages/HansardResult.aspx#/docid/HANSA…
[30]www.abs.gov.au/census/find-census-data/quickstats/2021/1RNSW
[31]www.abc.net.au/news/2023-01-19/australias-rental-market-to-tighten-in-2…
[32] In April 2022, Anglicare Australia released its annual Rental Affordability Snapshot, which compared 45,992 rental listings against the minimum and low-income rates. It found less than 2% of rentals were affordable for a full-time worker on the minimum wage and just 1 share house would have been affordable for someone on Youth Allowance.
[33] www.shelternsw.org.au/news_items/the-rental-affordability-index-how-bad…
[34]www.ahuri.edu.au/research/brief/why-does-australia-have-rental-crisis-a…
[35]www.greens.org.au/news/media-release/greens-rent-freeze-plan-couldve-sa…
[36]www.smh.com.au/property/news/extremely-challenging-sydney-house-rents-j…
[37]www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-pric…
[38]www.smh.com.au/property/news/ridiculous-prices-regional-rents-in-nsw-up…
[39]https://socialfutures.org.au/research-shows-the-2022-floods-exposed-fla…
[40]https://www.smh.com.au/property/news/the-regional-towns-where-holiday-h…
[41]www.abc.net.au/news/2022-11-22/families-left-living-in-tents-as-austral…
[42]www.smh.com.au/property/news/more-than-half-of-nsw-politicians-own-mult…