Queensland’s housing minister deems it “appalling” that landlords have been persuaded to boost rates amid a rental crisis after a Brisbane real estate agent advocated for rises of over 20%.
Leeanne Enoch’s remarks came after Guardian Australia reported that Ray White West End emailed landlords pushing them to increase rents by more than double the inflation rate.
“It is awful to see several real estate agents implementing significant rent hikes amid enormous demands on the whole housing sector,” said Enoch.
“I would strongly urge real estate agents and homeowners to have compassion when we gather at the Queensland housing summit to consider measures to ease market stress,” she said.
Enoch stated that the state’s emergency housing meeting on Thursday would involve many top industry organizations, non-government providers, and private sector players to examine all feasible options.
Fiona Caniglia, executive director of Q Shelter, found it difficult to comprehend why a real estate broker would advocate for such a “substantial increase.”
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“We understand that landlords need to pay their costs and rent their investment properties to make a tiny profit, but arguing for a 20% rise based solely on the fact that the market is tight and people will just accept it is troubling,” she added.
Caniglia predicted that without “major action” by the state government, the housing market will continue to deteriorate when Brisbane hosts the Olympics in 2032.
Penny Carr, the chief executive of Tenants Queensland, stated that the state’s housing situation had reached a crisis stage.
In the last year, Queensland rentals have increased by an average of $104 per week. “That is three times the inflation rate,” added Carr.
“It is inequitable and unsustainable. We demand that rent increases be limited to once per year and that the consumer price index be utilized as a benchmark for appropriate rent increases.”
According to the Town of Nowhere campaign, low-income households spend greater than fifty percent of their income on housing.
Aimee McVeigh, chief executive officer of the Queensland Council of Social Service, stated that the summit must prioritize the needs of the most disadvantaged by providing more social and affordable housing.
“This summit must commit to ensuring that every Queenslander has a roof over their head by 2032 and to building 5,000 social houses annually for the following decade,” she added.
Antonia Mercorella, chief executive officer of the Real Estate Institute of Queensland, stated that rental listings in Brisbane had decreased by 61.5% since the epidemic’s beginning, placing tremendous strain on supply.
Mercorella stated, “There is no doubt that market pressures over the past two years have been remarkable for various reasons and have had a substantial influence on rent rates, resulting in a challenging market for tenants.”
Mercorella stated that statutory safeguards protect renters from arbitrary rent hikes and bidding.
“Using CPI to limit rent increases is not a fair way to maintain market equilibrium,” she added.
“It disregards the growth in expenses incurred by property owners that are not aligned with CPI, such as mortgage repayments and taxes, repairs and maintenance costs, and insurance premiums.”
Luke O’Kelly, the leading realtor at Ray White West End, stated on Sunday that rental affordability would deteriorate if investors lose faith in the Brisbane home market.
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Tim Mander, the housing spokesman for the opposition, stated that tenants “should not blame their landlords… or real estate brokers” for rent rises, citing the scarcity of suitable homes as the cause.
“We need more social housing, affordable housing, and first-time homebuyer housing,” he stated.
Amy MacMahon, Greens MP for South Brisbane, argued that the “price-gouging” by the real estate industry underscores the necessity for a rent freeze.
“Emails like this make it quite evident that the significant rent increases we’ve witnessed over the past year aren’t only due to property investors meeting their costs. MacMahon stated that rents had increased by more than three times the rate of inflation.
