Greens campaign for rent freeze, housing affordability

September 7, 2022
Issue 
Housing is a human right
Housing is a human right, but governments treat it as a commodity.

Prime Minister Anthony Albanese鈥檚 crass attempt to comparing The Lodge 鈥斅燼 40-room mansion with tennis court, pool and a private chef 鈥斅爓ith 鈥減ublic housing鈥 shows how removed he is from the concerns of ordinary people.

As interest rates approached a on September 6, The Guardian, citing analysis by financial data firm RateCity, this will mean an additional $144 a month in mortgage repayments for each $500,000 borrowed.

Australian Broker in August that 鈥渘early half of Australian homeowners are under mortgage stress, with 45% of households spending more than they are earning鈥.

This comes on top of 鈥渞ental stress鈥 鈥 defined as spending 30% or more of income on rent 鈥 which affects millions.

A survey commissioned by indicates that 1.4 million people may be in some form of rental stress, and 1.1 million may be experiencing 鈥渆xtreme鈥 rental stress.

鈥淲hen combined, the total number of Australians spending 30% or more of their income on rent amounts to 14%, or a possible 2,719,000 individuals nationwide,鈥 Savvy reported.

The ABC similar figures in April.

This is the context in which Greens housing spokesperson Max Chandler-Mather has聽.

鈥淥ver the last 12 months, rents have increased seven times faster than wages in capital cities, forcing millions of Australians into severe rental stress while some regional areas have seen rent increases at even higher rates,鈥 he said on social media on August 25.

鈥淏y freezing rents for 2 years and capping rent increases after that, we can give wages and incomes a chance to catch up, and protect millions of households from potential eviction.鈥

Albanese the rent freeze idea, saying: 鈥淚t鈥檚 not clear to me, short of nationalising property, how that could be achieved. I haven鈥檛 seen any proposal, nor have the Greens raised with the government that at all.鈥

However, the proposal is workable and clear.

The Greens are proposing National Cabinet coordinate a nationwide freeze, with state and territory governments using their respective rental tenancy acts.

Chandler-Mather 聽to Albanese on September 7, saying: 鈥淪cotland froze rents in the private rental market without 鈥榥ationalising all property鈥 鈥.

鈥淭here鈥檚 a reason Scotland is freezing rents,鈥 he continued, 鈥渂ecause it works and it is exactly how you protect renters from unfair and massive rent increases.

鈥淣ow that Scotland has shown the way, it is time for the federal government to finally start treating this once-in-a-generation housing crisis seriously.鈥

Chandler-Mather said the Victorian government has frozen rents in the past and the federal government also froze rents during World War II.

Greens MP Amy MacMahon for a two-year rent freeze on August 31 in Queensland parliament. MacMahon鈥檚 bill amending the Residential Tenancies and Rooming Accommodation Act 2008 would make it illegal for landlords to charge more in rent than was charged on August 1. This would not change under a new tenant or if the house were renovated.聽After two years, a 2% rise in rent would be permitted every two years.

Queensland Labor鈥檚 housing minister Leeanne Enoch the Greens' plan, describing it 鈥渆xtremist鈥. She suggested renters would be disadvantaged because a rent freeze might 鈥渟ee a further reduction of housing supply in the private rental market鈥.

This reflects the major parties' position of not supporting any laws that put downward pressure on聽housing prices.

Socialist Alliance co-convenor聽Sam Wainwright told 麻豆传媒 that 鈥淭his view is fundamentally at odds with the measures needed to achieve housing affordability for the majority of the population.

鈥淲e think parliament must cap private rents at current levels for 10 years and public and social housing rents should be no more than 20% of a renter鈥檚 income.鈥

Wainwright said other that reduce the overall price of housing could include: expanded public housing; ending tax concessions like 鈥渘egative gearing鈥 for investors; and an expansion of renters鈥 rights.

Wainwright said that while some homeowners will not be affected by the price drop on properties, those with large mortgages will be hit and they need to be protected.

The biggest winners聽from the rise in house prices are the corporate investors and the big landlords, 鈥渓ike the parasite on 2GB who wanted sympathy while to owning 283 investment properties鈥.

Wainwright said these big investors need to be made to pay to ensure policies that protect housing justice for all.

Greens Brisbane City councillor Jonathan Sriranganathan is campaigning for financial penalties on investors who leave properties vacant for extended periods.

On September 6, he moved for council to undertake a public consultation with the aim of introducing 鈥渁 separate, higher ratings category for residential investment properties that are left vacant for at least six months鈥.

His aim is to ensure that investment property owners 鈥渉ave a stronger financial incentive to either rent out vacant dwellings or sell them鈥.

He said higher rates or charges would not apply to owner-occupier homes or tenanted investment properties.

The Liberal National Party majority on the council voted against his motion, but it was supported by Labor and an independent councillor.

Sriranganathan a minority of property investors prefer to 鈥渓eave investment properties empty rather than renting them out鈥. They do this 鈥渂ecause they鈥檙e more interested in making big money from selling the property at a higher price than they bought it鈥.

Brisbane City Council already has different ratings categories for commercial, industrial and rural properties, as well as owner-occupied homes compared to investment properties.

Sriranganathan is right to say that creating a new category that distinguishes between investment properties being rented out and investment properties that are left empty long-term is 鈥渞easonably straightforward鈥.

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