The Greens calls for two-year rent freeze comes under fire: lacks fundamental understanding of the issue

Calls for an ‘emergency’ freeze on rents has been slammed as lacking in any fundamental understanding of the issue. But the claim has support in some areas.

The Greens have come under fire for a recent proposal to introduce a nationwide two-year rent freeze.

Greens spokesman for Housing and Homelessness Max Chandler-Mather MP released a proposal Friday to adjust national tenancy standards that included the freeze, ongoing rent caps, and ending no grounds evictions.

A release by the Greens suggest rents would be capped at 2 per cent increases every two years – a move which Mr Chandler-Mather suggests would see wages catch back up with rents by 2029.

Greens MP Max Chandler-Mather has proposed a nationwide freeze on rents for the next two years.

“Rents are out of control, millions of Australian renters are struggling to pay the rent, and unless the Government wants to see more families sleeping in their cars, they need to do their job and act now to stop this crisis boiling over into a national tragedy,” Mr Chandler-Mather said.

“An emergency rent freeze will give wages and incomes time to catch up to rents, which over the last 12 months have grown seven times faster than wages in capital cities.”

The Real Estate Institute of Australia has urged the Greens to fact check the rent freeze snap, suggesting the idea lacks a fundamental understanding of the issue.

REIA President Hayden Groves said while the plan was well-intentioned, the move would do nothing to address Australia’s long term housing supply crunch.
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The Real Estate Institute of Australia Hayden Groves

“The real estate industry, particularly, property managers and owners have implemented the rental eviction moratorium during the past two years of the COVID-19 pandemic,” Mr Groves said.

“At the same time, rent has increased in areas where there is a chronic shortage of supply and unless this is addressed, the situation will worsen.”

Mr Groves said that governments at both the state and federal levels needed to focus on encouraging supply and investment in private property markets.

“Governments need to focus on encouraging supply and investment in private property markets.” Picture: NCA NewsWire / Gaye Gerard

The REIA President labelled the Greens proposal far fetched and unrealistic.

Recent SQM Research indicates renters across the country had seen annual rent increases of 17.9 per cent in capital cities and 13.4 per cent nationwide.

For those renters who live in capital cities, rents have grown seven times faster than wages.

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Originally published as The Greens calls for two-year rent freeze comes under fire: lacks fundamental understanding of the issue