New legislation by the Palaszczuk government, which vows to ensure safety and fairness in the community, could end up costing tenants up to $5,000 and result in job losses, new research has suggested.
The government’s proposed changes include the loss of landlord’s right to refuse pets, the introduction of tenants rights to modify property, new minimum housing standards and the inclusion of prescribed standards and to be in a certain state of repair.
While the changes in theory are a good thing for renters, property market research firm and buyer’s agency Propertyology believes the changes could cost tenants in the long term.
Propertyology head of research Simon Pressley said the mass exodus would cause a drastic undersupply of rental properties in a state with the nation’s highest rental population.
He also highlighted that a reduction in investor demand could lead to lowering employment from industries that rely on property such as construction.
“These ill-conceived reforms will create a major deterrent for any Queensland real estate-related business, which means lost employment opportunities for professions such as conveyancers, building and pest inspectors, and property managers,” Mr Pressley said.
Mr Pressley said that even if a conservative estimate of 5 per cent of landlords sell their properties, that would result in 38,000 dwellings removed from the rental pool.
“To put that into perspective, those 38,000 homes provide shelter for about 100,000 people. Where are they supposed to go when governments only supply 2 per cent of rental properties?” Mr Pressley said.
Mr Pressley also highlighted that the proposed changes could see the power shift from owners to tenants despite tenants not owning the property.
“The changes will mean that, even though they aren’t the owner of the asset, tenants will have the dominant hand when it comes to what they may do to a property and how long they live there for,” he said.
“While tenants might currently think this new legislation is a dream come true, the probability is they will be faced with extreme household budget pressure sooner rather than later,” Mr Pressley concluded.