Virus masks rental issues

THE fact Tasmanian rental prices are coming down is somewhat welcome news for struggling tenants, but it’s not exactly a cause for celebration.

The latest report on housing affordability from ANZ and CoreLogic reveals rent values across greater Hobart dipped 2.3 per cent in the June quarter.

The special COVID-19 edition of the report shows a combination of falling demand and rising supply during the coronavirus crisis had pushed values down between April and June.

For tenants, news that the cost of rent is going down, not up, will provide some comfort, especially for those already doing it tough due to the pandemic.

But the fact it has taken a global pandemic for prices to finally be pushed downwards underlines how important it is to find long-term solutions.

The problem remains that the median rent for all dwellings in Hobart was $440 at the end of June, an unaffordable proposition for many.

It is a long way from November 2016 when median rent in the state’s capital was $357.

And Hobart is, by far, the most unaffordable capital city in Australia relative to income, with tenants spending more than a third of household income to service rental payments.

It has been the least affordable of the capital cities since December 2018.

The recent fall in prices can be attributed in part to

IT WAS ALMOST INEVITABLE THAT RENTAL COSTS WOULD FALL, AND MANY RENTERS WILL BE BREATHING A SIGH OF RELIEF, HOWEVER WE DON’T NEED TO LOOK FAR TO UNDERSTAND THE BROADER ISSUE

a dip in tourist visitation, meaning more properties usually used for short-term accommodation have been put into the long-term market.

Meanwhile, rental subsidies handed out by the government — of up to $2000 to struggling tenants and contingent on a landlord agreeing to a rent reduction — would have also helped stressed tenants sleep a little easier at night.

But as the report from ANZ and CoreLogic shows, there is plenty more to do: “For relatively unaffordable markets like Hobart, broadbased affordability measures should be considered for longer term improvements in affordability, rather than relying on a global pandemic to reduce demand.”

It was almost inevitable that rental costs would fall during the pandemic, however we don’t need to look far to understand the broader issue.

It was only in February, just before the pandemic hit Tasmanian soil, when a House of Assembly Select Committee on Housing Affordability made a suite of recommendations to tackle the problem.

They included a review of residential tenancy rules to consider caps on rent increases, spot checks on properties and to make it easier for tenants with pets.

The report also recommended a freeze on the number of permits for short-stay accommodation in areas with housing shortages, a cap on the number of nights short-stay properties were on the market and tougher rules for operators.

The effects of the pandemic may have brought prices down a little in recent months, but we are still a long way from finding all the answers to fixing this deep and complex problem.

Responsibility for all editorial comment is taken by the Editor, Jenna Cairney, Level 1, 2 Salamanca Square, Hobart, TAS, 7000