Real Estate Institute of Tasmania say political parties are to blame for the state’s housing shortage

Private rental owners are not at fault for the state’s housing shortage, with the blame lying at the feet of the political parties, the Real Estate Institute of Tasmania says.

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THE Real Estate Institute of Tasmania has responded to commentary about the state’s housing crisis, saying it is up to the government to increase housing supply and defending the owners of private rentals.

It comes after concerns by the Tenants Union of Tasmania who said it had been contacted by more than 10 tenants about significant increases to their rent.

This followed the lifting at the start of the month of a moratorium on rent increases and evictions, which was brought in by the state government amid the COVID-19 pandemic.

REIT chief executive Mark Berry said there had been only a small number of tenants affected by significant rental increases.

Mr Berry said REIT members managed about 33,000 residential tenancies in the state and he said while a significant number of those tenancies would have received a notice for rent increases, many rents would not have changed as per the instruction of the property owner.

REIT chief executive Mark Berry says the political parties are to blame for the current housing shortage, not private rental owners. Picture: Eddie Safarik

Mr Berry said a housing shortfall in the state was not the fault of private rental owners.

“Private rentals and the owners of these should not be expected to provide a service that is social housing,” he said.

“For too long third-party groups have demonised the owners of residential tenancies as greedy, money-hungry individuals who only care for themselves.

“Unfortunately, the truth is tough, and many don’t like to hear it, especially the political parties because all along the way they are to blame for the situation we are all currently in, not as individuals but all previous governments.”

Tasmanian Residential Rental Property Owners Association president Louise Elliot said, like tenants, owners could also have been experiencing hardship such as losing their job.

Mrs Elliot suggested the moratorium had backfired.

“It was meant to protect tenants, and yes it did for a few months, but the legacy of that new risk and short-sighted action has and will make it far worse for tenants,” she said.

“Many owners have borne huge costs in lost rent and also major property damage, again due to the moratorium.”

She said landlord insurance was harder to get and land tax was rising, creating more hurdles for property owners.

Louise Elliot suggested the moratorium on rent increases and evictions had backfired. Picture Chris Kidd

The REIT suggested planning decisions should be removed from councils and replaced by one body administered by the state government.

Mr Berry said land tax on investment properties also needed to be reviewed, saying hikes have meant property owners have had no option but to increase rent.

“The only solution to the current residential tenancy crisis is housing supply,” he said.

“Providing incentives and opportunities to those that can invest in housing to do so and increasing stock will relieve the continued upward pressure on rent.”

Mr Berry said tenants could apply to the Residential Tenancy Commissioner for a review and then take it further to the Magistrates’ Court if they were not satisfied with the outcome.

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