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Aug 31, 2023

ACT Greens call for two

The ACT Greens are calling for a freeze on property rents amid what they say is

The ACT Greens are calling for a freeze on property rents amid what they say is a housing crisis in Canberra.

Greens leader Shane Rattenbury, who is an ACT cabinet minister, has written to Labor Chief Minister Andrew Barr seeking a two-year freeze for existing tenants.

He has also proposed a two per cent limit on price rises for new tenants.

"Many Canberrans are facing severe rental stress, with some essential workers paying up to 76 per cent of their income on rent," the party said in a statement.

"This is a crisis, but it is important to understand that this crisis has not evolved organically.

"This is a crisis created by the policies of successive federal Liberal and Labor governments that have consistently favoured the rich over everyone else."

The ACT Greens' position aligns with their federal counterparts, who have also called for controls on rental increases, to relieve what experts have dubbed a nationwide market crisis.

Canberra's median rental price is the nation's highest and has been for several years.

Among those navigating the rental market is Jessica Preston, who said a freeze could be life-saving.

Ms Preston described the apartment she lived in last year.

"It was not in good condition, there were broken doors, the oven was broken, we had mould — but despite that, I needed somewhere to live," she said.

"When the lease was coming to an end, I reached out to say I wanted to remain at the property.

"They came back and basically said: 'We'll only agree to a new lease if you agree to a $40 increase.'

"I did the research and … at the time, it should've only been about $25 or $30.

"I considered going back to them and [saying] the maths is incorrect, but I was so scared they'd retaliate and kick me out."

Ms Preston said she accepted the increase and worked extra jobs to make ends meet, but was eventually forced to move to a different property.

"It killed my budget," she said.

She said a rent freeze could improve relationships between renters and landlords.

"A rental freeze will save people's lives," she said.

"I think that would encourage landlords to actually keep good tenants."

But landlord Emma Barclay said a freeze would be another blow for those who owned investment properties.

"I think that it's going to increase the pressure of being an investment owner — people are already feeling the pressure of the cost-of-living increase," Ms Barclay said.

"The increase in value due to the last two years with the market peaking has substantially increased what rates and land tax cost, so investors are already trying to absorb that expense.

"Plus, their mortgage rates are going up and that's happening every single month.

"I think when you then add on the inability to try to maintain those costs via … rent, more and more investors are going to need to exit the market."

However, Ms Preston said that was a risk that investors had to accept.

"All investments come with risks, and unfortunately that's a risk … that interest rates might go up," she said.

"And not to sound cruel, but your [landlords'] costs going up aren't my problem. I still deserve to have a safe home.

"If I'm taking care of the property, I'm paying my rent, then there's no reason for me to be evicted or to have my rent raised when it shouldn't be."

The ACT government has changed several laws recently to strengthen renters' rights in Canberra.

In April, a law came into effect that required public and private landlords to fit properties with ceiling insulation that met the standard of new buildings.

In March, the government banned no-cause evictions.

Housing Minister Yvette Berry said today she was meeting her counterparts from across Australia to discuss renters' rights.

"ACT Labor knows that we need to increase housing supply," she said.

"That is why we continue to pursue planning reforms and large-scale build-to-rent projects, to deliver that supply for the fastest-growing city in the country."

Ms Berry said the government's policies were having an effect, pointing to a rise in Canberra's vacancy rate and promising signs in new data released today.

"While median rents across the combined capital cities increased 11.7 per cent for the 12 months to the end of April, in Canberra, dwelling rents fell 0.7 per cent," she said.

Ms Berry said the government had previously considered applying rental price controls.

"The government will put in place a process to ensure we can thoroughly investigate the impacts of any further market interventions and have a fully informed government and stakeholder consideration of the issues," she said.

"This will include particular consideration of the supply of rental properties in Canberra … and the financial impact on Housing ACT."