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Victorian Renters Face Eviction Crisis Amid Rising Costs
A recent report reveals a concerning trend: the number of Victorian renters receiving eviction notices for unpaid rent has surged to five times the levels seen in 2021. This sharp increase highlights the escalating difficulties renters face in keeping up with the increasing cost of living and housing affordability.
Sharp Increase in Rent Hikes
The report, issued by the state’s commissioner for residential tenancies, indicates that a substantial 58% of rental households experienced a rent increase in the year leading up to September 2023. This is a significant jump from the 29.8% recorded in the preceding 12-month period, intensifying the pressure on tenants.
Call for a “Rental Fairness Formula”
These findings have prompted Tenants Victoria to advocate for a “rental fairness formula” aimed at controlling excessive rent increases. The organization also emphasizes the need for greater support for renters navigating what they describe as “brutal rental market conditions.”
Report Highlights Worsening Trends
Commissioner Heather Holst’s report analyzes data from various sources, including census information, government bodies, welfare organizations, and community legal services such as Tenants Victoria. Its purpose is to pinpoint ongoing and deteriorating trends within Victoria’s rental market.
Key Findings of the Report
Eviction Notices on the Rise
A notable increase in eviction notices has been observed compared to 2021. During the 2023-2024 financial year, an average of almost 2,000 notices to vacate were issued weekly.
- Nonpayment of rent: Acccounted for 95% of at-fault notices, showing a fivefold increase.
- Landlord selling: Was the primary reason for more than half of the no-fault notices.
Declining Affordability
Rental affordability has reached its lowest point in over a decade, consistently deteriorating in both metropolitan and regional areas over the past two years. The report found that almost all rentals remain unaffordable for jobseekers and those relying on government assistance.
Tightening Market
The market has tightened over the past couple of years, with a 2% vacancy rate in greater Melbourne – a rate comparable to five years ago – after spiking at more than 6% in the metropolitan areas during the pandemic, the report showed.
Pet Ownership Challenges for Renters
Despite the Victorian government’s 2020 law preventing landlords from denying renters the right to keep pets, the Lost Dog’s Home reports that landlord restrictions are still the second most common reason for pet surrenders, marking a 47% increase since 2021. The report acknowledges a lack of specific data on renter pet ownership but notes that many renters believe having a pet reduces their chances of securing a rental property.
Issues with Substandard Rental Properties
The combination of historically low vacancy rates and rapidly rising rents continues to be a problem. Consequently, there are consistent reports of residences of substandard quality available for rent. Commissioner Holst expressed optimism regarding the recent establishment of a rental taskforce by the Victorian government to investigate substandard dwellings.
Tenants Victoria’s Perspective
Increased Demand for Assistance
Jennifer Beveridge, chief executive of Tenants Victoria, stated that their services are experiencing heightened demand for advocacy and advice. Due to funding limitations, however, they can only respond to one in five requests for assistance.
Financial Strain on Renters
“Renters are really feeling the financial strain. They tell us about the dreadful choices that they have to make: going without food, without heating, kids’ supplies, haircuts, and shoes. The constant need to make these choices makes it tough,” Beveridge said.
Call for Further Government Action
Beveridge acknowledged the Victorian government’s efforts to improve renting conditions but stressed that “much more attention is needed to address the worst housing crisis in living memory.”
Need for a Rental Fairness Formula
“It’s clear that we need a rental fairness formula to guide the setting of reasonable rent increases. We don’t want to ever again see the runaway rent increases of the past few years.”
Government Response
The Victorian minister for consumer affairs, Nick Staikos, said the government had introduced more than 130 rental reforms to strengthen renters’ rights but there was still “more to do”.
“Australia is in a housing crisis and young people don’t have the same opportunities their parents had – that’s why we’re working to make the property market fairer for renters,” he said.
“Our reforms are limiting rent increases, stopping landlords making dubious bond claims without evidence, extending the ban on extra fees for rental applications and paying rent, capping the cost of breaking a lease and making sure when you need an extra key or fob for your apartment you get one.”
The changes were announced in October last year, but Staikos said they required new laws, which will be introduced to parliament in stages over the the next 12 months.