SHADOW Housing Minister Mark Parton has voiced concerns over the government’s proposed rental reforms which would ban no-cause evictions and set new minimum property standards in the ACT.
Mr Parton in Estimates Hearing yesterday (August 24) said the reforms could have a “serious impact on renters, especially those already struggling to get into the market.”
He pointed to a government survey which showed 21 per cent of landlords would likely sell their properties as a result of the changes.
He said the remaining landlords would likely pass the costs associated with the reforms on to their tenants.
“The people who should be carping the most about these changes are renters. Landlords always have choices. Renters usually don’t,” said Parton.
“These changes will result in high rents, less rental properties and ultimately more homelessness and Canberrans struggling to put a roof over their head.”
The Draft Bill, released by ACT Attorney General Shane Rattenbury, would make it illegal to terminate a tenancy without a “legitimate reason”.
Under the current laws, landlords are able to terminate a tenancy without reason as long as they provide the tenant with 26 weeks’ notice.
The Bill would also make it an offence for landlords or agents to solicit rental bids in order to attain the highest rental price possible.
The proposal has been praised by Executive Director of tenant advocay group Better Renting, Joel Dignam, who said it would allow more Canberrans to find stable homes.
“We’ve heard from so many people who talk about the cost of forced moves: not just in moving vans and lost income, but in the mental burden of never feeling like you can put down roots,” said Dignam.
“Ending unfair evictions and requiring a good cause to end a tenancy is an essential step to ensure people can feel secure in their home.”
Mr Parton remains concerned, pointing to similar laws introduced in Victoria which he says led to a “dramatic tightening” of the state’s rental market.
“Despite Mr Rattenbury’s utopian vision, these policies have been rolled out in Victoria where they have resulted in thousands of landlords exiting the market,” he said.
“If we see the same implemented in the ACT there is no doubt it will significantly impact renters.”
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