The Victorian Government Needs to Help Fix the Mildura Rental Crisis They Have Made Worse & They Need To Act Now!

The rental crisis in Mildura is set to worsen due to Victorian Labor Government regulations and increasing state land tax. The new requirements mandate that all rental properties must meet the same electrical and gas compliance standards as new homes. These stringent standards necessitate significant upgrades and expenses, which many property owners are unwilling or unable to bear. Consequently, owners are opting to sell their properties rather than invest in costly compliance measures.

These properties are often sold to owner-occupiers, reducing the overall supply of rental homes. At the same time, investors prefer to purchase newer, compliant properties, which are more expensive and can command higher rents. This shift not only diminishes the availability of affordable rental homes but also drives up rental prices for the properties that do remain in the market. The dual impact of stringent compliance requirements and higher land taxes is thus exacerbating the rental affordability crisis in Mildura, as the stock of budget-friendly rental properties continues to shrink.

To address the worsening rental crisis in Mildura, the government can take proactive measures by collaborating closely with state real estate industry bodies. By easing the burden on rental providers, the government can prevent further reduction in affordable rental properties. One effective approach would be to decouple the compliance requirements for minimal standards from those applicable to new properties. Instead, properties should undergo safety checks every two years to ensure essential safety measures are in place, such as functional smoke detectors, non-leaking gas appliances, and safe electrical systems.

Implementing this approach can be done immediately and would help maintain the stock of affordable rental properties in the local private rental sector. This would alleviate the financial strain on property owners, encouraging them to retain their rental properties rather than sell them due to prohibitive compliance costs.

Furthermore, understanding the current rental market composition is crucial. In Mildura, the majority of rental properties are in the private sector, with only a small percentage available as social or government housing. Nationally, private rental properties account for about 26% of all housing, while social or government housing comprises roughly 4% . By ensuring that compliance requirements are manageable, the government can help stabilize the private rental market, ensuring that affordable rental options remain available for tenants in need. Victoria's rental market is facing significant challenges, with a net loss of 5,044 rental properties over the last three months, and a downward trend in investor loans indicating a broader reluctance among investors. This is further shrinking the available rental stock, making it harder for tenants to find affordable housing.

To address this crisis, we need to avoid the blame game and focus on constructive solutions. Demonising landlords will only make things worse for long suffering renters.