“The RBA’s comments have validated what REINSW has been saying for some time – that the falling level of available accommodation for tenants would push rents higher,” said REINSW President Cristine Castle.
REINSW provides the only comprehensive data on rental vacancies across NSW. The latest figures showed a vacancy rate of just 1.6% for Sydney, with low levels across other regional areas of the state.
REINSW is calling for the NSW Government to take immediate action to encourage investors to provide more places for tenants to live.
“NSW is facing a rental crisis as the lack of accommodation and rising rents cause tenants to struggle, while low levels of housing affordability make it hard for them to buy,” Mrs Castle said.
“Rental properties don’t appear out of thin air. Politicians should not forget that it is mainly the mum and dad investors out there who provide the accommodation that puts roofs over the heads of renting families.
“Unfortunately the combination of low rental yields and property taxes has discouraged investors. It will take a major confidence boost for investors to return to residential property.”
REINSW is lobbying for the abolition of land tax on residential properties to remove one of the disincentives for property investors.
“Otherwise tenants will find they have nowhere to live,” Mrs Castle said.