2020-04-15
The Victorian Greens have cautiously welcomed the Andrews Government’s announcement of support for renters across the state, including legislating an eviction ban and a ban on rent increases.
Many renters have lost their jobs or had their incomes impacted as a result of COVID-19, and the new $500 million dollar package will go some way towards providing them with peace of mind over the coming months.
However, the Greens are concerned about the gaps that remain in the details of the announcement that could leave many renters in a vulnerable position and saddled with huge debts.
By trusting that landlords will do the right thing as part of rent negotiations, the Government is putting the onus on tenants already experiencing financial difficulties to take landlords to mediation with no guarantee of a rent reduction.
It will be difficult for many tenants to make fair deals when there is such a striking power imbalance between a landlord and tenants, particularly when they have just lost their primary source of income.
Leader of the Victorian Greens, Samantha Ratnam, said that while the Government’s announcement incentivises landlords to provide rent reductions where necessary, there are still parts of the real estate industry playing hard ball with tenants.
The actions of the real estate industry over the last few weeks, including being slapped down by ASIC, don’t encourage confidence that tenants will find the relief they need at this time.
The Government’s announcement also provides no clarity on whether renters will be saddled with debts at the end of the COVID-19 crisis if they aren’t able to reach an agreement with their landlords.
Quotes attributable to Leader of the Victorian Greens, Samantha Ratnam MLC:
"The Victorian Labor Government’s announcement today is an important first step, but without further clarity many renters may still see their pleas for a rent reduction denied by landlords more interested in playing hard ball.
"It’s true that the $500 million dollar package provides an incentive to landlords to do the right thing, but hoping that all landlords will do so risks leaving tenants out in the cold, especially during a time of such uncertainty.
"Unfortunately for tenants, the government's announcement does little to address the power imbalance that exists between tenants and landlords, with landlords continuing to hold all the cards.
"It is likely that we will also see tenants being saddled with significant debts once the COVID-19 crisis is over.
"At a time when people are being forced to choose between paying for rent or food, we can’t afford any half measures."