Rent caps ruled out in Qld
Queensland Premier Steven Miles confirmed at the state’s first election debate that the Labor government will not look to pursue rental caps.
This announcement comes after the Queensland Premier left the door open on rental caps in comments to reporters last week, stating he was not prepared to explicitly rule out possible implementation of the reform.
The state’s current Premier and Queensland Opposition Leader, David Crisafulli, both ruled out the idea of rental caps on the debate stage on 3 October, with the two politicians explaining their policies on housing as well as other state matters ahead of the Queensland election, set to be held on 26 October 2024.
Now that the door is shut in Queensland, the ACT appears set to remain the only jurisdiction in Australia with rental caps, with the law prohibiting landlords from raising rents more than 10 per cent above inflation, as measured by the consumer price index.
The Real Estate Institute of Queensland (REIQ) welcomed the commitment on rental caps made by the two politicians during the debate, as the industry body has long opposed the idea of instituting a ceiling on rental increases.
REIQ CEO Antonia Mercorella commented that the government could now “focus on pulling the right levers to increase housing supply”.
“This confirmation will help restore confidence to existing investors and provides appealing certainty to future investors,” she said.
“Investors could not be expected to keep bearing the responsibility of housing the majority of Queensland’s rental population in circumstances where their costs were subject to normal market conditions and inflationary pressures, while tenants’ costs were capped by legislative intervention.”
While the CEO acknowledged that rents have “materially risen” in Queensland since 2020 and subsequently put pressure on renters, she emphasised that “it does not change the fact that rent caps are not the answer”.
Mercorella also commented that rental caps could potentially result in “decreased rental housing supply, a deterioration in the standard and quality of rental properties and their inclusions, stifled tenant mobility and potential higher rent increases at rent review times”.
The REIQ has long opposed the prospect of rental caps in the state, voicing similar concerns that former Queensland premier Annastacia Palaszczuk’s exploration into the possibility of a rental cap last year could “lead to distortion in the rental market”.
Although Mercorella noted that “the light at the end of the tunnel seems dim”, the CEO stated “we are already seeing some signs of rent stabilisation due to reduced demand from denser household formation”, and added that “where affordability is topping out, rent is being adjusted lower to meet the market”.
“History tells us the best way to stabilise and keep rents in check is to maintain a healthy vacancy rate by ensuring there is adequate housing supply”.
These comments also come after Prime Minister Anthony Albanese and Minister for Housing Julie Collins stated last year that no federal mandate around rental caps would be issued, with the Prime Minister later pronouncing the prospect of negotiation on behalf of eight states and territories as “absurd”.