Plan to tackle rental shortage desperately needed in Perth
With Perth’s vacancy rate at the lowest it has been in 40 years, REIWA is calling on the political parties to commit to tackling the state’s rental shortage, if elected.
As Perth emerges as one of the fastest-growing major markets in the country, with a vacancy rate of 0.9 per cent, REIWA is demanding that a plan be drafted to deal with rental shortages, which could topple Western Australia from its number one spot on the affordability ladder.
“We are still one of the most affordable states, but urgently need more rental stock to keep it that way,” REIWA president Damian Collins said.
According to Mr Collins, it’s vital investors are encouraged back into the market so that more vacant properties are available for tenants.
“This rental shortage will not go away without a significant uplift in private investment in housing. REIWA is recommending two key actions to encourage investment in WA,” Mr Collins said.
As such, REIWA is asking for two things – short-term incentives to encourage investors and legislative reform to ensure a fair rental system for tenants and lessors.
“Despite record-low vacancy rates, investment activity remains subdued in WA. REIWA is calling on all parties contesting the election to commit to short-term financial incentives for lessors to help make investing in WA property a desirable option,” Mr Collins said.
In order to emerge victorious in the competition for investors, Mr Collins has proposed the introduction of land tax rebates, for a limited time, to reduce the costs associated with owning an investment property.
“Other states are doing this, so there is no reason why WA, with a healthy budget surplus, shouldn’t be taking these steps to encourage investors back to the market. In the Northern Territory, for example, there is no land tax payable on investment properties,” Mr Collins said.
As for the legislative reform, Mr Collins gave seven key recommendations, which REIWA feels will “help keep residential tenancies in WA fair and balanced”.
The recommendations are:
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