Jim Chalmers calls on landlords to take rate cuts ‘into consideration’

Jim Chalmers has made a request of landlords after the Reserve Bank cut interest rates for the first time in more than four years.

Jim Chalmers is calling on landlords to take the Reserve Bank of Australia’s rates cut “into consideration” when setting their rents.

Tuesday’s decision to cut interest rates from 4.35 per cent to 4.1 per cent represented the first cut since November 2020.

Treasurer Jim Chalmers is calling on landlords to take the Reserve Bank’s rates cut “into consideration” when setting their rents. Picture: NewsWire / Martin Ollman

Since then, the RBA has hiked the official cash rate more than a dozen times, with property owners passing on increased costs to tenants already weathering inflation.

The Treasurer on Wednesday said the cut would have “a broader impact than just people with a mortgage”.

Soaring rents across the country’s biggest cities have contributed to a surge in housing insecurity. Picture: NewsWire / David Swift

“It has a broader impact in our economy, and it changes housing costs as well,” Mr Chalmers told the ABC.

“So we want to make sure that landlords take this into consideration as well.

“Renters are doing it tough as well, that’s why we’re providing two rounds of rent assistance help and all the other cost‑of‑living help that we are providing.

“Because we know as tough as it’s been for mortgage holders who get some relief yesterday, it’s also been tough for renters, and they are a big part of our thinking when it comes to our cost‑of‑living help.”

Soaring rents across the country’s biggest cities have contributed to a surge in housing insecurity, with monitors reporting up to 122,000 Australians sleeping rough on any given night.