Real Estate
2 April, 2024
Woodford rentals vanish
One of the region’s largest real estate agents has only one available rental property between Caboolture and Blackbutt, with agents fearing the current housing crisis is only worsening.
Low investor demand caused by high interest rates and cost of living demands is seeing a far greater proportion of owner-occupier sales than is traditionally seen, agencies say.
Ray White Woodford Principal and Director of Asset Management, Jill Garth, said their last rental out of over 200 propertiesa three-bedroom, onebathroom house in Woodford - was expected to be snapped up in days.
She said the broad housing situation was a “true crisis” for tenants and landlords.
“Investors are now very reluctant to buy due to the interest rates and new rental laws, so the houses typically get sold to owner occupiers”, she said.
“Every single time this happens, another property is removed from the rental market.”
Ms Garth predicts the new Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Bill 2024, introduced to parliament on March 21, “will do absolutely nothing to ease this rapidly worsening rental crisis”.
One of the main changes put forward by this new bill is to attach a 12-month limit on rent increases to a property, rather than a tenancy, hoping to stabilise rent and provide more certainty for renters.
Ms Garth says these proposed changes are “very short-sighted” and are set to worsen the crisis rather than help it.
“The rapid increase in interest rates combined with the change in legislation to cap rent increases to once every 12 months has crippled so many investors, forcing them to sell.
“Stage two rental reforms are going to make this situation even worse if the 12-month rent increase caps are approved to be attached to the property, rather than the tenancy.
“There needs to be some incentive for landlords to retain their investment properties.
“The balance has swung so signifi cantly that I can completely understand why so many are selling up.”
Chris Wease from Re/Max Living has also said they currently have no rentals available in Woodford, but do in surrounding areas, noting this does constantly change.
Mr Wease echoed Ms Garth’s concerns over government policies, calling the current issue a “systemic problem”, which has resulted from “governmental negligence for decades”.
“The answer to the rental shortage is very simple - more landlords, instead of discouraging aspiring investors and existing landlords with threats to policies which affect investors,” he said.
“By continually diminishing the rights of the landlords seemingly more and more in favour of the tenants, discourages investors from the housing market, and instead they seek to invest in alternatives where they are less at risk by governmental changes, plus the returns may be more attractive.”
Mr Wease said the government needs to consult with professionals in the field to find ways to encourage property investors back to the market and streamline the process of developmental approvals.
“I understand governments have taken positive steps towards addressing the housing shortage, but sadly for tenants there is no relief anytime soon as these projects will take years to reach completion and are unlikely to keep up with future demand, as the population and migration continue to grow.”
The only other rental currently on the market in Woodford is through Woodford Livestock & Property.
Wamuran is the town with most current rentals, having two on the market, while Stony Creek, Bellthorpe, D’Aguilar and Delaney’s Creek all have one current listing on RealEstate.com.au (April 2).
Housing Minister Meaghan Scanlon said, “These reforms are about making renting fairer, safer and easier”.
“Renters will have their privacy protected and a new code of conduct will stamp out dodgy and unprofessional practices.”
“These important protections go alongside cost-of-living support we are rolling out for Queenslander renters to cover things like rent arrears and increases, and this Bill will make sure they can get a home and stay in it.”
