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Fears Queensland Rental Reform Bills Will Deter Investors

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Rental reform bills to cap increases, ban rental bidding and scrap no ground evictions are being considered in Queensland.

The bills, introduced to parliament in May and June, are open for public comment until July 13.

While rental advocacy groups want them to go further, real estate peak body REIQ labelled the reforms as ludicrous, saying they would deter investors.

The bills were introduced as rent prices in Brisbane jumped 3.1 per cent in June and 10 per cent over the year for houses, and 0.6 per cent in the month and 2.3 per cent annually for units, according to SQM research.

Tenants Queensland said the proposed bill would affect 1.8 million renters in Queensland, representing 35.9 per cent of households, with an average tenancy of 17.5 months.

REIQ chief executive Antonia Mercorella said the rental market was under enormous pressure as more people moved north.

“It’s critical we continue to attract property investors to improve rental supply and keep pace with demand so as to maintain rental affordability,” Mercorella said.

“It’s completely unrealistic to expect that lessors will continue to invest in Queensland real estate if faced with untenable arrangements that don’t allow them to protect the value of their asset and strips them of fundamental decision-making powers and rights.”

Tenants Queensland chief executive Penny Carr said there were greater opportunities to provide security for the growing rental population.

“We welcome rental law reform, but the proposed changes don’t go far enough and won’t achieve the stability we need for Queensland renters, including the 43 per cent of households that have dependent children,” Carr said.

“Covid-19 has placed extra stress on Queensland renters—calls for assistance to Tenants Queensland have increased 53 percent since the pandemic.”

The reforms also include minimum standards for rental homes, minimum notice-to-leave periods, capping rent increases to the Consumer Price Index and allowing tenants to make minor changes without gaining landlord consent.

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Article originally posted at: https://www.theurbandeveloper.com/articles/queendsland-rental-reform-bills-deter-investors