Rental crisis in SA: Laws to be introduced to state parliament to cap rent price increases

Laws to prevent landlords from increasing rent for two years – set to be proposed in parliament next week – have been criticised as unfair by multiple peak industries.

A proposal to introduce rent controls for South Australian landlords is “like putting a bandaid on for a cardiac arrest, the peak urban industry group has warned.

Greens’ MLC Robert Simms will introduce the Bill to parliament next Wednesday which will see rents capped so landlords are only able to increase prices in line with inflation, in a bid to ease the “out of control” rental crisis in SA.

There are currently no laws in SA which restrict landlords from increasing rent for tenants.

“I think there’s huge community support for it, I mean, rental prices in South Australia are out of control at the moment,” Mr Simms told The Advertiser.

“We need rent controls to ensure that renters are protected, rent increases of 10 to 20 per cent are crippling families.

“Without reform, I fear more South Australians will be plunged into poverty and homelessness.”

On average, rent has increased from $350 a week to $420 a week in the last two years, he said.

Robert Simms MLC. Picture: Matt Loxton

“We’ve got people literally sleeping on the streets, we’ve got people sleeping in tents and caravans … something’s got to change,” Mr Simms said.

But the proposed laws have been slammed by multiple industry groups including the Urban Development Institute of Australia’s SA chief executive officer Pat Gerace.

“This is like putting on a bandaid for a cardiac arrest,” Mr Gerace said.

“Instead of restrictions on supply, why not talk more constructively about increasing actual supply?

Supplied Editorial Urban Development Institute of Australia (SA) CEO Pat Gerace.

“That will be the only way to maintain affordability and availability of rental stock.”

The Property Council of Australia’s SA executive director Daniel Gannon said property owners will lose out.

“There are no benefits in market intervention for property owners and investors who take great risks to purchase, own and provide homes for renters," Mr Gannon said.

“Policy thought bubbles don’t help anyone – this approach is all stick and no carrot and it’s everything we shouldn’t be doing for our housing market.

“Instead of focusing on rent caps we should be more focused on increasing the supply of housing across South Australia.”

SA Property Council executive director Daniel Gannon. Picture: Stephen Laffer

Shelter SA’s executive director Dr Alice Clark welcomed the proposal for rental controls.

“In one way it’s bringing attention to the price of renting to the public and parliament so that’s a good thing,” Dr Clark said.

She hoped peak industry bodies like the Property Council of Australia could be involved in consultation to “find common ground”.

Human Services Minister Nat Cook said she was reviewing the rental assistance program and the emergency assistance program.

“I think we would like to appeal to property owners to have a look at the current circumstances we’ve got which is a situation not just here but nationally that we really as a generation haven’t seen before,” she said.

Is this Adelaide's craziest rental? The toilet is in the kitchen. Picture www.realestate.com.au

It comes as The Advertiser yesterday revealed an apartment in North Adelaide that had a bathroom placed in a kitchen surrounded by a glass box that was available for rent at $420 a week.

The O’Connell St apartment was listed for rent on realestate.com.au and described as a “spacious, fully furnished upstairs studio”.

The kitchen appears to have a dishwasher and sink but no cooktop or oven.

Meagan is a victim of the rental crisis and has been living in a tent at West Beach Caravan Park. Picture: Tom Huntley

Other examples of the state’s rental crisis have been laid bare in recent weeks including a single mum on a disability pension living in a tent.

Homeless disability pensioner Meagan had been living in a tent at West Beach’s Big 4 Holiday Park for weeks with her teenage son after their rental lease was not renewed.

Mannum couple Tracy and Allen Short were also living in tents on the banks of the Murray for more than three months due to a shortage of rentals in the area.