Greens propose plan for two-year residential rent freeze, then rules that restrict rent increases to rate of inflation

The Greens have urged parliament to back their plan to freeze rents before setting a cap on increases.

Rent for all South Australian residential tenants would be frozen for the next two years, then increase no higher than the rate of inflation, under a bill to be introduced to state parliament next week.

The plan has been put forward by Greens MLC Robert Simms, who said stronger protections for tenants were necessary given the current market pressure.

“We are in the midst of the worst housing crisis in generations. It’s clear that leaving tenants at the mercy of the market is simply not working,” he said.

“It’s morally wrong that we have more and more South Australians being plunged into poverty and homelessness, while some landlords rake in record profits.”

Mr Simms said the bill would grant renters a reprieve from skyrocketing prices and “insert some fairness back into the rental market”.

“The Greens urge the parliament to back this plan and give renters some relief,” he said.

After the two-year rent freeze, which would be backdated to January 1, rent could only be raised in line with cost-of-living inflation.

Greens MLC Robert Simms. Picture: NCA NewsWire/Morgan Sette

Consumer and Business Affairs Minister Andrea Michaels. Picture: Supplied

Consumer and Business Affairs Minister Andrea Michaels did not commit to supporting the bill, but said the government was “acting decisively to address rental affordability”.

“Last year, we introduced the most extensive reforms to South Australia’s Residential Tenancies Act in a generation,” she said.

“We know it’s tough out there for tenants and our reforms such as raising the bond threshold are helping ease the cost of renting without putting further pressure on supply, which evidence shows occurs when you introduce rent capping.

“Lack of supply is the predominant cause of the current rental crisis with a vacancy rate of less than 1 per cent in SA and so the last thing we want to do is to reduce that further.”

In February, SuburbTrends forecasting showed that, if the state’s housing shortage continued to drive up prices at the same rate this year as it did last year, renters would face increases of up to 53 per cent.

Those renting units in the statistical area of Seaford Rise–Moana, which incorporates Seaford Rise, Maslin Beach and Moana, faced the greatest potential dollar value hike and could be paying an extra 43 per cent, or $222 per week by the year’s end.

That would take median weekly house rent in those locations from $520 in February to a forecast $742 by December.

April PropTrack data also showed Adelaide to have the nation’s most difficult market for prospective tenants, with just 0.83 per cent of homes available for lease compared with the national average of 1.08 per cent.