COVID-19 grace period over as state government offers help for renters and landlords alike

The clock is ticking on Tasmania’s controversial ‘eviction-free’ period despite cries to extend it, as rents in Hobart spike to higher than Melbourne and Brisbane. LATEST >>

• Talking Point: Don’t kick out the state’s struggling tenants now
• Talking Point: Extend no evictions period at landlord’s peril

THE state government will extend funding to help tenants struggling to pay rent due to COVID-related hardship but there will be no extension of the eviction moratorium which expires on Sunday.

The government had banned the eviction of residential and commercial tenants since March last year — and had also placed a moratorium on rent increases.

Building and Construction Minister Elise Archer announced the Rent Relief Fund and Landlord Support Fund would be extended until March 31 as a transition measure, making up to $4000 available to pay for rent arrears.

Building and Construction Minister Elise Archer. Picture: LUKE BOWDEN

“We were the first state in Australia to legislate protections for residential landlords and tenants experiencing severe hardship during the unprecedented circumstances caused by the COVID-19 pandemic,” Ms Archer said.

“Tasmania is in a strong position and our government is now focused on assisting residential tenancies to transition out of the emergency period.”

Ms Archer said more than $2.8m in support had already been paid to more than 3400 landlords and tenants, which had covered 81 per cent of rental arrears.

She pointed to several assistance measures already in place, including the availability of rent arrears payment orders and the power to review any unreasonable rental increase, both conducted by the Residential Tenancy Commissioner.

Ben Bartl from the Tenants’ Union of Tasmania said removal of protections would be hard-felt by renters.

Ben Bartl from the Tenants’ Union of Tasmania. Picture: MATHEW FARRELL

“The government’s increased financial assistance of up to $4000 for residential tenants and landlords will ensure that less tenants have to worry about eviction,” he said.

“However, we are concerned that with rents already having returned to pre-COVID-19 levels, many tenants will face rent increases for the first time in almost a year at the same time as Tasmania has significantly higher unemployment and our economy remains depressed.”

Greens leader Cassy O’Connor said the Tasmanian government’s response was unsympathetic and at odds with other states.

“We need those protections extended otherwise, what we’re going to see is rent increases that are almost immediate and a higher potential for evictions for people who are already suffering during this pandemic,” she said.

Labor housing spokeswoman Alison Standen said the end of rental protections this weekend could have a devastating impact on families.

Labor housing spokeswoman Alison Standen speaks to the media.

“Many, many Tasmanian families are already facing homelessness because of a lack of social housing and now more tenants who are struggling to pay the rent in the fallout of the pandemic are at risk,” she said.

“By refusing to extend rental protections, Ms Archer is abandoning families that are without a safety net and are now facing homelessness through the failure of the government to provide enough social housing.

Median rental fell in 2020 but prices are on the rise again

Helen Kempton

THE cost of renting a house in Hobart fell slightly in 2020, but is expected to rise again.

CoreLogic’s Rental Review for the December 2020 quarter shows the median rent for a house in Tasmania’s capital sits at $460 a week, down 1.2 per cent on 2019.

However, prices started to increase again towards the end of the year, going up by 2.1 per cent between September and December alone.

It now costs 36.5 per cent more, about $165 a week, to rent a house in Hobart than it did a decade ago, the report shows.

And it is cheaper to rent a house in Melbourne, Perth, Brisbane and Adelaide than Tasmania’s capital.

Canberra is now the most expensive market with a median rent of $586 a week, followed by Sydney and Darwin.

Sandy Bay, Hobart. Picture: SAM ROSEWARNE.

Welfare advocates say Hobart is still the least affordable city to rent in the nation because of the percentage of the average weekly wage needed to pay for housing.

CoreLogic said regional markets outperformed capital cities in the past three months of 2020.

“COVID-19 not only disrupted how we live, but also reshaped housing demand as accommodation preferences swung towards lower density options,” CoreLogic’s research director Tim Lawless said. “Higher density housing markets have seen less demand during the pandemic; a trend that has been amplified by stalled overseas migration and remote working opportunities luring residents further afield.

“Whether this trend has some longevity is yet to be seen, but international borders are likely to remain closed for some time yet, and for many, remote working conditions have proved to be productive.”

Australia’s dwelling market recorded its largest monthly increase in rental rates since 2010 in December – up 0.6 per cent over the month.

The rental snapshot follows a new year jump in Hobart’s median house price.

Figures showed the median house price at the start of January sat at $590,000, up $20,000 from December 2020.

Real Estate Institute of Tasmania president Mandy Welling said the jump was likely driven by recent sales over the $1m mark rather than an overall increase in home values.

But a lack of housing supply will force prices up, she said.

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