Landlord survey shows potential impact of rental freeze on housing stock
70 per cent of landlords 'more likely' to sell if rental freeze introduced
A national survey of landlords has revealed that rental caps and rental freezes could have a significant impact on the Australian rental market, with nearly seven out of 10 landlords more likely to sell their properties if they were introduced.
The snap survey was undertaken last weekend of Property Club members, which is the largest independent property investment group in Australia.
Property Club president Kevin Young said that the survey showed that a rental cap and/or rental freeze being proposed by the Greens Party as part of the Federal Housing Australia Future Fund Bill could have a negative impact on an already tight rental market.
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“The snap survey of Property Club membership found 67 percent would be more likely to sell their investment properties if proposals such as rent freezes and rental caps were introduced,” he said.
“18.8 percent said it would have no influence on their decision to sell, with 13.1 per saying they were unsure if they would sell.
“The survey confirms that many landlords are already under financial stress, and any additional cost burdens imposed on them by the Government would lead to a stampede of property investors exiting the real estate market.
“The upswing in investors already selling out of the property market was underlined by recent figures which showed that investor listings as a share of all listings hitting a record high of 40 percent in Sydney and 36 percent of listings in Melbourne in June, just shy of that city’s record.
“2.2 million family investors supply private rental homes Australia-wide and the prospect of rent freezes or rent controls is now of deep concern to these mum and dad investors.
“The constant speculation in the media about rental caps and rental freezes is already starting to cause these mum-and-dad investors to put a pause on investing in the real estate market.
“Any rental caps or freezes would be the final straw that breaks the property investor camel’s back in Australia. They would lead to even fewer rental properties pushing up rents and leading to a homeless crisis in Australia.
“Mum and Dad property investors have not only had to endure a massive hike in interest rates since early 2022 but limits on how often they can increase their rents. Their interest rate payments have also exploded as a result of many of them being forced onto interest and principal loans from interest-only loans due to regulations imposed by APRA.
“Property Club is calling on the State and Federal Governments to publicly rule out any suggestion that a rent cap/freeze will be imposed on landlords so that confidence is restored to the property investment market.”
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