The Queensland government announced a series of housing policies the day before yesterday (4th) primarily to address the challenges faced by tenants facing rising rents. Furthermore, to combat professional misconduct in the rental market, the government will develop a new code of conduct for the rental industry, penalizing real estate agents who participate in or encourage rental bidding. Furthermore, a AU$160 million tenant deposit loan program will be introduced, along with an AU$1.25 billion increase in funding for social housing, further safeguarding the housing rights of Queensland residents.
Deposit-following plan
The Queensland government will introduce portable bond schemes, allowing tenants to transfer their bonds from one property to another. "Tenants will no longer have to wait for their bond to be returned while they're still paying another bond," said the new Housing Minister, Meaghan Scanlon. The government will also establish a "transition bond loan" to help households cover the upfront costs of a new bond.
Ban on rent bidding
The government's reforms also include a ban on rent bidding. Any estate agent who participates in or encourages tenants to bid higher for properties could be fined. Rent bidding, by definition, occurs when a tenant bids higher than the advertised rent in order to get a spot in a limited number of rental properties.
In addition, the government will establish a rental housing code of conduct to clarify the obligations of those who rent their properties. Furthermore, tenant rights will be further strengthened, including requiring landlords to notify tenants within 48 hours before entering the unit, using standardized lease forms, creating a framework for mutually agreed repairs and alterations to properties, and ensuring timely collection of utility bills.
One resident interviewed by ABC News said a real estate agent had asked her to bid $200 more than the advertised rent. Queensland Premier Steven Miles said any agent caught engaging in rental bidding would be fined. "These new laws will put an end to this practice and provide tenants with more transparent information," he said.
Helping victims of domestic violence
Changes to Queensland's tenancy laws will also help victims of family and domestic violence. The government is legislating to allow tenants experiencing family and domestic violence to change the locks on their properties without the landlord's consent to protect themselves.
In addition, Housing Minister Meaghan Scanlon said support would be provided for purchasing household appliances and renting moving vehicles to help victims of domestic violence find safe housing.
Increase the supply of social housing
The state government has set an ambitious target to add more than 53,000 homes to Queensland's social housing stock over the next two decades, though construction industry figures are skeptical of the plan, saying a shortage of workers and regulations are hindering its implementation.
Premier Miles announced yesterday that $1.25 billion would be allocated for social housing, which would mean six new social homes being built every day over the next 22 years. "Our plan is to have 53,500 social homes by 2046, supported by more than $1.2 billion in additional funding, and with an investment of more than $7 billion since 2015," he said.
Academic research indicates that Queensland needs an additional 18,000 construction workers each year to meet long-term housing and infrastructure targets. The government is increasing its demands on the construction industry, but attracting enough workers to complete this daunting task remains a challenge. In the past financial year, the Queensland government built only 485 social housing units.
Master Builders Association chief executive Paul Bidwell said he couldn't see how the government could meet its targets given the current setup and the shortage of skilled workers.
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