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• Rents on the rise • Eviction moratorium ends • Airbnbs boom
THE impact of the coronavirus crisis on the rental market could be revealed as the state government lifts a ban on evictions and rent increases.
The government will instead extend up to $4000 to help tenants struggling to pay the rent because of COVID-related hardship, but Labor says the end of other protections could have a devastating impact on families.
“Many, many Tasmanian families are already facing homelessness because of a lack of social housing and now, more tenants who are struggling to pay the rent in the fallout of the pandemic are at risk,” Labor housing spokeswoman Alison Standen said.
It comes as new data shows Hobart is the nation’s fourth most expensive capital city to rent in.
It now costs 36.5 per cent more (or $165 a week) to rent a house in Hobart than it did a decade ago.
Meanwhile, the short-stay market has rebounded in Tasmania with Airbnb reporting 47,000 guests used the service in the six weeks from December 1.
THE state government will extend funding to help tenants struggling to pay rent because of COVID-related hardship but there will be no extension of the eviction moratorium which expires on Sunday.
The government had banned the eviction of residential and commercial tenants since March last year — and had also placed a moratorium on rent increases.
Building and Construction Minister Elise Archer announced the Rent Relief Fund and Landlord Support Fund would be extended until March 31 as a transition measure, making up to $4000 available to pay for rent arrears.
“We were the first state in Australia to legislate protections for residential landlords and tenants experiencing severe hardship during the unprecedented circumstances caused by the COVID-19 pandemic,” Ms Archer said.
“Tasmania is in a strong position and our government is now focused on assisting residential tenancies to transition out of the emergency period.”
Ms Archer said more than $2.8m in support had already been paid to more than 3400 landlords and tenants, which had covered 81 per cent of rental arrears.
She pointed to several assistance measures already in place, including the availability of rent arrears payment orders and the power to review any unreasonable rental increase, both conducted by the Residential Tenancy Commissioner.
Ben Bartl from the Tenants’ Union of Tasmania said removal of protections would be hard-felt by renters. “The government’s increased financial assistance of up to $4000 for residential tenants and landlords will ensure that less tenants have to worry about eviction,” he said.
“However, we are concerned that with rents already having returned to pre-COVID-19 levels, many tenants will face rent increases for the first time in almost a year at the same time as Tasmania has significantly higher unemployment and our economy remains depressed.”
Greens leader Cassy O’Connor said the Tasmanian government’s response was unsympathetic and at odds with other states.
“We need those protections extended otherwise, what we’re going to see is rent increases that are almost immediate and a higher potential for evictions for people who are already suffering during this pandemic,” she said.
Labor housing spokeswoman Alison Standen said the end of rental protections this weekend could have a devastating impact on families.
“Many, many Tasmanian families are already facing homelessness because of a lack of social housing and now more tenants who are struggling to pay the rent in the fallout of the pandemic are at risk,” she said.
“By refusing to extend rental protections, Ms Archer is abandoning families that are without a safety net and are now facing homelessness through the failure of the government to provide enough social housing.