Fears over rent hikes

Landlords will use Covid excuse, says union

THE state’s tenants union has warned of rent spikes of up to 20 per cent as the state’s moratorium on rent increases and evictions ends from Monday.

The protections for rental tenants were introduced as a response to the impacts of COVID-19, but advocates say tenants are now “terrified” and losing sleep over the change.

“It’s important the government steps in to regulate the market to ensure there continues to be affordable properties for renters,’’ Tenants Union of Tasmania’s Ben Bartl said.

TENS of thousands of Tasmanian tenants are holding their breath to see if they will be hit with rent increases from Monday, as the tenants union warns of hikes of up to 20 per cent.

The state’s moratorium on rent increases and evictions ended at midnight.

Ben Bartl of the Tenants Unions of Tasmania said tenants were “terrified” and losing sleep over how they would continue to keep a roof over their head if rents jumped unreasonably.

“If the notices we’ve been seeing are any guide, rents are likely to go up by around 10 per cent,” he said. “But we have no doubt many landlords are going to use the COVID-19 excuse to potentially double any rent increase. Whereas they might have put it up by 5, 7 or 10 per cent last year, we’re likely to see increases of 15-20 per cent just because landlords see this as an opportunity.”

Mr Bartl said the view of the residential tenancy commissioner was the market dictates the rent. “Because there’s a lack of supply, rents are likely to go up,” he said.

“It’s important the government steps in to regulate the market to ensure there continues to be affordable properties for renters.”

Greens leader Cassy O’Connor said she was aware of at least one property agency that had notified its tenants that it would begin from Monday to implement all outstanding rent increases that were deferred during the pandemic.

“The government knows the rental market is still tight and renters are still suffering economically as a result of the pandemic and yet they are prepared to throw tenants out on to the mercy of a market that has no space for them at the same time as telling Tasmanians who are lucky enough to have a second property, they’ll ease the land tax burden,” she said.

Resources Minister Guy Barnett said the Rent Relief Fund and Landlord Support Fund had been extended until March 31, making up to $4000 available to pay for rent arrears.

“Under the law, any unreasonable increase can be appealed to the residential tenancy commissioner,” he said.

Hobart City Council alderman Simon Behrakis said an effective way to boost housing supply would be to make planning scheme changes.

His notice of motion going to the council’s planning committee meeting on Monday calls for a report to consider: AMENDING the planning scheme to allow consideration of housing market conditions when making planning decisions;

ADDING provisions so the planning scheme can respond to community-level housing needs in a timely manner and; ESTABLISHING a housing supply forecasting council to collect and analyse housing supply and demand drivers.

Alderman Behrakis said the planning scheme as it stood did not allow for a development’s contribution to housing supply to be taken into consideration.

“There are people who have the resources to build these houses and they’re being held back by the council from doing so,” he said.