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Wednesday, September 18, 2024

ACT Greens promise better conditions for renters

The ACT Greens plan to set new minimum standards for all rental homes, ensuring that the third of Canberrans who rent live in “a comfortable, efficient and healthy home”, ACT Greens leader Shane Rattenbury said.

The Greens would make it compulsory for rental homes to have curtains or blinds, draught-proofing, and at least one fixed heater.

Rental homes would have to be structurally sound and weatherproof; have basic security (deadlocks, locks on windows, and the ability to safely screen visitors); have ventilation in all rooms, with homes being free from structural mould and damp; and safe electrical and lighting, cooking facilities, bathroom facilities, waste collection, and water.

Developing and implementing new minimum standards is estimated to cost $13.6 million.

Landlords would be able to borrow up to $5,000 interest-free through the Sustainable Household Scheme to make improvements to meet the new minimum standards.

“We think this is pretty basic stuff that’s affordable for landlords and will make a big difference to tenants’ quality of life,” Mr Rattenbury said.

The Real Estate Institute of the ACT (REIACT) emphasised that most ACT landlords were considerate and responsive to tenant requests for upgrades like heating and draught-proofing.

“Despite what the Greens would have you believe, all landlords in the ACT are not heartless and tenants are not powerless,” CEO Maria Edwards said. “Rental properties are generally priced according to the features available.

“Heating, cooling and energy efficiency are often top of the list as considerations, and there would be very few landlords in Canberra that would not supply some sort of heating – it doesn’t make sense as their property would just not rent in a city with our climate.

“There is nothing currently stopping a tenant requesting upgrades such as curtains or draughtproofing if they are finding a property uncomfortable, and property managers facilitate these requests often as with any other upgrades or maintenance.”

All-electric and solar-powered

The Greens would upgrade public homes to be all-electric, replacing 7,750 gas appliances in 5,000 public housing and properties at a cost of $30 million. Solar panels would be installed on all suitable public homes by 2030, and on all new public homes from 2025, at a cost of $37.2 million.

“Our plan to install solar panels on every feasible public home will be a game-changer for renters in public housing, bringing down their energy bills and making their homes more comfortable,” Mr Rattenbury said.

Joel Dignam, executive director of Better Renting and a former Greens organiser, welcomed the Greens’ commitments.

Expanding minimum rental standards, including for efficient heating and cooling and sealing up draughts, were “simple measures that go a long way to help make rental homes liveable, and they will complement the work that has already been done around ceiling insulation”, Mr Dignam said.

“Getting solar on more rental homes makes a big difference to cut the cost of living and promote clean energy, and public housing is an obvious place to start for the ACT Government. Other proposed measures to make homes efficient and all-electric will help more renters to benefit not just from lower bills but also from better health.”

However, REIACT warned that the Greens’ policy could harm housing supply.

“What is dangerous, though, is mandating expensive upgrades in a cost-of-living crisis and an environment where housing supply is a critical issue,” Ms Edwards said. “It would be wonderful if all homes in the ACT had an eight-star energy rating. However, it can’t be ignored that this comes at a cost.”

‘Cracking down’ on short-term rentals

The Greens would “crack down” on short-term rentals, limiting them to primary residences, restricting the number of short-term rentals per investor, and giving Owners Corporations veto over short-term rentals.

Following the example of Victoria, the Greens would design a vacancy tax on empty homes in the ACT and possibly to vacant land to discourage land-banking. Between 2,400 and 6,000 homes in the ACT are sitting empty, the Greens state.

Occupancy agreements

The Greens plan to improve protections for renters (particularly students) on occupancy agreements, which they state offer fewer safeguards than standard leases. These agreements are commonly used in university residential colleges, and the Greens are concerned that landlords and organisations can limit protections extended to other renters.

Harini Rangarajan, Greens candidate for Murrumbidgee, said university students should not be disadvantaged by signing up to occupancy agreements in residence halls.

“Occupancy agreements provide fewer protections than leases do, and that’s an issue that’s been raised with us by students,” Ms Rangarajan said.

“The Greens’ plan to limit occupancy fees, apply minimum standards, and ensure timeframes for repairs and maintenance are met, will improve the everyday lives of renters on occupancy agreements in Canberra.”

Mr Dignam said the measures around short-term rentals and a vacancy tax were positive:

“Most people recognise that the role of housing is, first and foremost, to provide decent homes. It shouldn’t be about making wealthy people even richer. These measures will help to get housing doing what it’s meant to: providing homes so that more people can afford to be part of the Canberra community.”

REIACT, however, did not support further restrictions on short-term rentals at this stage.

“It is unnecessary and potentially detrimental to other industries such as tourism,” Ms Edwards said. “Without tourism, the ACT Government will be forced to balance the books by hitting property owners even harder in future budgets. Short-term rentals are often useful for those new to Canberra who would like to scope out the property market in person before committing to a long-term rental or for visitors to events such as Floriade – we need to showcase our beautiful city more to support the local economy.”

Greens: Necessary to solve the housing crisis

The Greens assert that these measures are necessary to address the housing crisis and to improve the quality of life for renters.

“The Greens are planning a huge investment into public housing, to house every person on the waiting list and many more Canberrans who are struggling to afford market rents,” Mr Rattenbury said.

“The government should be a role-model when it comes to providing comfortable, affordable, safe and secure housing to people, and these Greens initiatives will make it a reality.”

The Greens have already promised to freeze then cap rent increases; establish a Rental Commissioner who would cover strata matters; and make the Rent Relief Fund permanent.

Mr Rattenbury said the initiatives build on previous Green measures such as banning no-cause evictions, enabling more renters to keep pets, and compulsory ceiling insulation in rental homes. The Greens leader noted that a recent review found ceiling insulation made rental homes more energy efficient and comfortable, and did not (as ‘conservatives’ had predicted) push rental prices up or availability down.

“The fear-mongering that’s out there to protect the market instead of people is really appalling,” Mr Rattenbury said.

“REIACT rejects the Greens suggestion that the threat to housing supply due to increased regulation is fear-mongering,” Ms Edwards said. “Ask any Agent at the moment in Canberra whether investors are currently selling off and you will get a resounding ‘Yes’. It takes a while for the data to support what is happening on the ground, but this has been a real concern of ours for a while, noting that private investors are vital to not only the supply and choice of housing options for renters in the short term, but also long-term as well.”

Shadow housing minister Mark Parton MLA (Canberra Liberals) criticised the Greens’ housing policies:

“The Greens continue to make Canberra the least attractive place in Australia to offer a rental property to the market. These changes which are designed to help renters always tend to have the opposite effect. As investors leave the market and the cost burden forces rents higher, it’s renters who lose out.

“It’s important that we continue to improve the standard of rental properties in the ACT, but it must be done in a measured and considered way to avoid unintended consequences.”

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