Yahoo Finance Fears major housing crisis fix will only make life worse for Aussie renters: 'Screwed over'
The Greens are sounding the alarm that the government's Build to Rent program could actually increase rent prices.
There are major fears the government's Build to Rent plan to address the housing crisis will only make the situation worse for tenants. The initiative is designed to give tax breaks to property developers to encourage them to build more rent-only homes and ease the burden on Aussies looking for a roof over their heads.
The Greens are not a fan of the project and have even teamed up with the Coalition to oppose it. The party's housing and homelessness spokesperson Max Chandler-Mather told The Project that the Build to Rent plan could actually cause rents to increase.
"We just had an inquiry into Build to Rent, and not a single expert would say anything nice about Labor's proposed scheme," he said.
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"No one was able to say if it would help anyone. They pointed out that schemes similarly around the world see corporate landlords engage in rent maximisation schemes that drive up rents and screw over renters."
He's called on the government to invest billions in public housing instead and introduce rent cap freezes to give Aussie tenants a break.
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The Greens spokesperson said it "beggars belief" that the Albanese government isn't keen on that second point because more than seven million renters across the country have "no control" over how much their rents go up when it comes time for a lease renewal.
Parliamentary library analysis for the Greens released earlier this year showed Aussies could have been spared $5.3 billion in rent increases over 12 months if a rent freeze was implemented.
Build to Rent has had a rocky ride in 2024
The Senate knocked back the Build to Rent legislation earlier this year, which saw it sent to an inquiry for further scrutiny.
But it failed to garner the support of the opposition and the Greens, with the Coalition saying it perpetuated a “rent forever” approach to housing and the Greens saying it would do nothing but give tax handouts to property developers to build homes nobody can afford.
Support from the Greens appears the government’s only pathway to pass its Help to Buy and Build to Rent bills, with the minor party saying it won’t guarantee its support unless Labor begins negotiations on reforming capital gains tax and negative gearing provisions, and rent freezes and caps on rent increases.
Greens Leader Adam Bandt said they were willing to work with Labor but claimed there had been no olive branch extended for negotiation.
“The housing crisis is breaking people, so instead of playing political games and bringing stunts before the Senate, the Prime Minister should start negotiating seriously with the greens to fix the housing and rental prices,” he said.
The Help to Buy scheme is another aspect of Labor's plan to fix the housing crisis.
The proposed scheme would allow up to 40,000 first-home buyers over four years to purchase a property under a shared equity scheme with the government footing up to 40 per cent of the funds for a new home and 30 per cent for an existing home.
Anthony Albanese lashed out at the Senate crossbench for stalling both bills and told the opposition and the Greens to “get on with it”.
The Prime Minister said the legislation was “not complex” and “based on things that is their policy”.
“If there are alternatives, you have a chance to move amendments, and people vote on those amendments, and then you vote on the [legislation],” he said.
“They all have that opportunity, but get on with it. Don’t sit back and do what they did with the Housing Australia Future Fund.”
- with NCA Newswire
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