As the Western Australia election approaches, it is crucial for the new government to carefully consider the potential impact of rental reforms on investor sentiment and rental supply, according to the Real Estate Institute of Western Australia (REIWA).
A recent survey conducted by REIWA revealed that changes in property tax settings or tenancy legislation have a significant influence on investors’ motivation to sell their investment properties. In fact, 83% of respondents stated that changes to property tax would affect their decision to sell, while 74% indicated that changes to legislation would drive them to sell.
Cath Hart, CEO of REIWA, emphasized the importance of housing policies in Western Australia, which will be key pledges in the upcoming state and federal elections. Supply and affordability are the primary concerns when it comes to housing, and private investors play a crucial role in providing rental housing in the Western Australian market. Approximately 70% of investors are small-scale investors with one property.
Hart also noted that investors in Western Australia are highly sensitive to changes in regulatory settings. The COVID-19 rental legislation implemented in 2020-2021 was deeply unpopular among investors and led to a mass exodus from the market, resulting in a significant reduction in rental supply. However, recent improvements in stock availability can be attributed to the state’s balanced Residential Tenancies reforms and incentives for short-term rental accommodation and vacant properties.
Unlike Western Australia, states like Victoria have experienced a decline in rental supply due to reduced land tax thresholds and high compliance requirements for landlords. Hart emphasized the importance of stable and balanced regulatory settings for both tenants and property owners in order to ensure a healthy rental market.
1 Comment
I couldn’t agree more with REIWA’s urgent plea for equitable change in the state election. It’s high time we address the inequalities in the rental market. Hopefully, this plea leads to concrete reforms that benefit both tenants and landlords.
It’s great to see an organization like REIWA taking a stand for necessary rental reforms. We need to have more transparency in the rental market, ensuring that both landlords and tenants have a fair and balanced playing field.
While I understand the urgency for rental reforms, I wonder if there are any specific proposals that REIWA is putting forward to ensure a smoother implementation and avoid unintended consequences.
As a tenant, I wholeheartedly support REIWA’s plea for equitable change. It’s disheartening to see how some landlords take advantage of their position to exploit vulnerable renters. We need regulations in place to protect tenants and ensure fair treatment.
I completely agree with REIWA’s call for rental reforms. As a landlord myself, I’ve seen the need for more balance in the rental market. It’s imperative for both tenants and landlords to have clear rights and responsibilities.
I appreciate REIWA’s plea for equitable change, but I also believe that addressing the root causes of rising rental prices should be part of the conversation. Are there any plans to tackle the scarcity of affordable rental properties in the region?
The rental market desperately needs a fair shake, and REIWA’s plea for equitable change hits the nail on the head. It’s time for the lawmakers to step up and ensure that nobody is left vulnerable in the rental process.
I’m glad to see REIWA advocating for rental reforms. With the uncertainties caused by the pandemic, it’s crucial to have regulations in place that provide security and stability for both landlords and tenants.
I’m curious to know if REIWA is collaborating with any other organizations or initiatives aiming for rental reforms, as a collective effort would have a stronger impact in bringing about change.
Ensuring equitable rental reforms would go a long way in promoting social equality. I truly hope that the state election leads to positive change in the rental market, providing equal opportunities for all.