7 OUT OF 10 LANDLORDS WILL SELL THEIR PROPERTIES IF RENTAL CAPS/RENT FREEZES ARE INTRODUCED

by recent fgures which showed that investor listings as a share of all listings hitting a record high of 40 per cent in Sydney and 36 per cent of listings in Melbourne in June, just shy of that city’s record.

these mum-and-dad investors to put a pause on investing in the real estate market.

The introduction of rental caps and rental freezes would have a disastrous impact on the Australian rental market with a national survey of landlords revealing that nearly 7 out of 10 would make them more likely sell their properties if they were introduced.

The snap survey was undertaken last weekend of Property Club members which is the largest independent property investment group in Australia.

Kevin Young, President of Property Club, said that the survey confrmed that a rental cap and/or rental freeze being proposed by the Greens Party as part of the Federal Housing Australia Future Fund Bill would lead to even higher rents and greater homeliness throughout Australia.

“The snap survey of Property Club membership found 67 per cent would be more likely to sell their investment properties if proposals such as rent freezes and rental caps were introduced.

“18.8 per cent said it would have no infuence on their decision to sell, with 13.1 per saying they were unsure if they would sell.

“The survey confrms that many landlords are already under fnancial stress, and any additional cost burdens imposed on them by Government would lead to a stampede of property investors exiting the real estate market.

“The upswing in investors already selling out of the property market was underlined

“2.2 million family investors supply private rental homes Australiawide and the prospect of rent freezes or rent controls is now of deep concern to these mum and dad investors.

“The constant speculation in the media about rental caps and rental freezes is already starting to cause

“Any rental caps or freezes would be the fnal straw that breaks the property investor camel’s back in Australia. They would lead to even fewer rental properties pushing up rents and leading to a homeless crisis in Australia.

“Mum and Dad property investors have not only had to endure a massive hike in interest rates since early 2022 but limits on how often they can increase their rents. Their interest rate payments have also exploded as a result of many of them being forced onto interest and principal loans from interest-only loans due to regulations imposed by APRA.

“Property Club is calling on the State and Federal Governments to publicly rule out any suggestion that a rent cap/freeze will be imposed on landlords so that confdence is restored to the property investment market”, he said.