In great news for investors, National Cabinet yesterday announced an end to any further consideration of rent caps and freezes.
Private investors own the vast majority of Australian rental property, many of them ‘mum and dad’ investors and those seeking to fund their retirements pension free. They provide an essential service by plugging the huge gap between available public housing and the demand for housing. Rent caps and freezes would have placed additional pressure on investors, already dealing with numerous interest rate rises and increased land tax.
Market forces (supply and demand) will continue to be the only driver of rental prices, as National Cabinet has now acknowledged. Whilst vacancy rates remain so low and public housing in such short supply, rental providers are free to set rentals which will ensure their investment remains a viable option.
Until next week,
Nick Lord (Director)