The Property Investors Council of Australia (PICA) acknowledges the introduction of the Consumer and Planning Legislation Amendment (Housing Statement Reform Bill) to the Victorian Parliament last week. While PICA welcomes certain measures aimed at improving rental property standards, we remain deeply concerned that other proposed reforms could exacerbate challenges in an already strained rental market, where existing investors are already exiting in record numbers.
Key proposals, such as expanding the factors considered by Consumer Affairs Victoria (CAV) and VCAT in rent reviews, the removal of no-fault evictions, and the extension of notice-to-vacate periods to 90 days, risk further discouraging small business private rental accommodation providers from investing and participating in the rental market. With these small businesses already supplying 90% of rental housing in Australia, these measures could unintentionally reduce housing availability and rental affordability for tenants.
Additionally, PICA believes that proposed increases to penalties for rental providers and agents advertising non-compliant properties are unnecessary, as existing penalties have already proven effective. These additional burdens are likely to deter much-needed future investment and supply in Victoria’s rental market.
However, on a positive note, PICA also supports reforms that promote safe and habitable rental properties. We commend the introduction of mandatory annual smoke alarm checks and the requirement for properties to meet more reasonable minimum standards at the time they are advertised, rather than waiting until lease agreements are signed. PICA also supports efforts to enhance professionalism within the real estate sector, including mandatory training and expanded licensing requirements for owners corporation managers.
Ben Kingsley, Chair of PICA, expressed concern over the potential long-term effects of the reforms on Victoria’s housing ecosystem:
“While some of these measures prioritise tenant safety and comfort, others create additional obstacles for rental providers, who are already grappling with high compliance costs and reduced incentives. This risks further depleting rental stock at a time when housing affordability and availability are critical issues across Victoria.”
“A sustainable rental market requires a fair and balanced approach that benefits both renters and small business rental providers. We call on the Victorian Government to focus on policies that attract and retain private investors, rather than driving them out of the market.”
PICA also recognises the Government’s decision to defer the introduction of new energy efficiency standards for rental properties, acknowledging that this provides some temporary relief to rental providers managing the ever-increasing compliance costs and state taxes.
As the peak body advocating for property investors in Australia, PICA will continue to engage with the Victorian Government and other stakeholders to ensure that rental market reforms are balanced and effective. We remain committed to supporting our members by providing clear guidance on these changes and advocating for solutions that work for everyone in the rental ecosystem.
