Housing affordability could take initial hit under Victoria’s new rental rules

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Housing affordability could take initial hit under Victoria’s new rental rules
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But the government says most of the costs associated with the proposed rental standards will be offset by savings from more energy-efficient homes.

Rents could increase and fewer homes could be available under new rental standards proposed for Victoria if costs are passed on to tenants and landlords leave the market, government departments have acknowledged.

“If you’re looking at some of the more potentially costly replacements, these are costs that are being incurred by landlords in any case ,” Williams said. “The departments explain that rental supply may contract in the short term as providers undertake upgrades to comply with the new minimum standards. The departments also explain that these impacts will be limited by varying when compliance with each standard is required, and as some of the preferred options account for potential implementation risks .”Consultancy Deloitte, in a regulatory impact statement for the departments, said the effect on the rental market was likely to be minimal.

Jennifer Beveridge, chief executive of Tenants Victoria, said renting was an essential service, and the living standards of one-third of Victorians would improve as a result of the proposal. “Many renters have told me over the years about it all just disappearing out through the roof or through the cracks,” Holst said.

Consultations close in July before new standards are determined in October. Caine asked the government for more time to analyse and understand the impacts.“The government needs to make sure these new standards are strongly and proactively enforced,” Lucas-Healey said. “It’s simply not fair to put that responsibility onto renters.”

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