Rent caps officially scrapped, restoring confidence says REIQ

The Real Estate Institute of Queensland (REIQ) is welcoming the unequivocal declaration in last night’s Great Debate, by both the Premier and Leader of the Opposition, that rent caps will not be introduced in Queensland – effectively ruling them out post-election.

With both sides of politics stating their position on this important issue, it gives confidence that irrespective of the election result, rent caps will not be introduced in the next term of the new government.  

REIQ CEO Antonia Mercorella said with rent caps officially off the table, government could focus on pulling the right levers to increase housing supply.

“This confirmation will help restore confidence to existing investors and provides appealing certainty to future investors,” Ms Mercorella said.

“Investors could not be expected to keep bearing the responsibility of housing the majority of Queensland’s rental population in circumstances where their costs were subject to normal market conditions and inflationary pressures while tenants costs were capped by legislative intervention.  

“While we acknowledge that rents have materially risen in Queensland since 2020 and are acutely aware of the pressure this has placed on the rental community, it does not change the fact that rent caps are not the answer.

“They are not the panacea many argue them to be, and evidence from around the world where rent caps have been or, still are, in place demonstrates the potential negative consequences of such market intervention.

“This includes decreased rental housing supply, a deterioration in the standard and quality of rental properties and their inclusions, stifled tenant mobility and potential higher rent increases at rent review times.  

“History tells us the best way to stabilise and keep rents in check is to maintain a healthy vacancy rate by ensuring there is adequate housing supply.

“While there’s a long way to catch up and the light at the end of the tunnel seems dim, we are already seeing some signs of rent stabilisation due to reduced demand from denser household formation, and where affordability is topping out, rent is being adjusted lower to meet the market.”

ENDS

Media enquiries:
Claire Ryan, Media and Stakeholder Relations Manager, The Real Estate Institute of Queensland
M: 0417 623 723 E: media@reiq.com.au

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