Here, we will discuss the restrictions on rent increases and the ideas being considered for housing reform to stop urban sprawl. Landlords have praised “exciting” rent increases brought about by housing shortages and record low vacancy, while criticizing suggestions to regulate prices to ease pressure on tenants as “ludicrous.” In light of rising interest rates and rules they say are driving them out of the market, the Australian Homeowners Association hosted a webinar on Tuesday titled “Is it still worth being a homeowner?” Continue reading the article to learn more about this topic.
Daniel Andrews Rent Freeze and Capitalization Increase
Under major housing reforms aimed at providing security for foreclosed Victorian youth, landlords would only be allowed to raise rent once every two years and could be subject to a ceiling on the increase. Prime Minister Daniel Andrews has urged Victoria to limit urban development on Melbourne’s outskirts, vowing that a planned zoning review will increase density and high-quality housing in the mid-suburbs and provide more security for tenants. “Everything is on the table,” Andrews told The Sunday Age. “Our goal is to provide even better protections for tenants.
“Too many Victorians are struggling with their rent and have to move away from their workplaces. The continuous creation of neighborhood after neighborhood does not make sense. More desirable homes must be built, to the highest design standards. Although Andrews has recently stated that the planning renewal would be one of the most important in the state’s history, he did not explain what measures would be put in place to help tenants. A senior government source with knowledge of the negotiations said limiting landlords to a rent increase every two years, up from the current 12-month restriction for most situations, was being considered, but they requested anonymity because they were not authorized to share specific information publicly.
The effects of combining that new time limit with a rent cap is another thing Treasury officials are thinking about. Several models are being considered, including the one used in the ACT, in which rent increases are capped at 11% of inflation.
As a result, the ACT has seen below-average rent increases, but there are fears that by tying rent increases to inflation, rents could rise more during the time when renters are most affected by cost-of-living pressures. A government representative declined to provide further details about the planning and home renovations. The reform package’s emphasis on renters comes after a prolonged decline in housing affordability, made worse by significant overseas migration, a lack of supply and, more recently, rising construction costs, rising interest rates and failed developers.
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Source: vtt.edu.vn