Proposed legislation changes to Queensland’s rental laws may mean that renters see their weekly payments increase by $100 or more as property invesors leave the market. The new laws, which would restrict a landlord’s asset ownership rights, may mean that there will be a large decrease in the availability of rental properties according to some property experts.
Propertyology Head of Research Simon Pressley said that the reduction in investor demand would also be terrible for the employment industries that rely on property transactions, such as construction.
“These ill-conceived reforms will create a major deterrent for any Queensland real estate-related business, which means lost employment opportunities for professions such as conveyancers, building and pest inspectors, and property managers – and it’s not like Queensland is leading the national pack for job creation.
“Queensland’s construction sector, one of the state’s largest employers, will also feel the brunt of this legislation as to get a lot of projects out of the ground, developers generally rely on investors for pre-sale commitments.”
Many renters have welcomed the proposed change however, as it means that even though they aren’t the owner of the asset, tenants will have the dominant hand when it comes to what they may do to a property and how long they live there for. It might seem like a dream come true, but the pressure on household budgets will soon be felt if the legislation is passed and property investors do end up leaving the market as some fear.
“Propertyology’s analysis concluded that it is quite feasible that rents in a number of Queensland locations could increase by $100 per week, or $5,000 annually, over the next two years,” said Mr Pressley. To put this all in context, if just 38,000 properties are sold by their investors, then 100,000 extra renters will be looking for a home.
While the legislation may not pass, it will definitely have a hand in shaping the future of Queensland’s investment and rental industries.