Rent capping plan would crunch market
A proposal to introduce rent capping in Sydney would crunch the housing market and force up prices, according the Property Council.
The NSW Greens are promoting a plan to legislate a link between rents and inflation.
“The Greens’ proposal for rent capping is a contender for the silliest idea of the year,” NSW Executive Director Glenn Byres said.
“Investors denied the ability to seek a market-based return would flee – drying up supply, crunching the market and escalating rents.
“It would actually hurt the very renters they claim to be helping.
“The Greens are effectively saying investors cannot take any upside in a stronger market, but are left to carry the risk of lower rents in a softer market.
“It would also freeze the capacity of renters to negotiate rent adjustments below inflation in low-growth markets.
“Sydney does have a housing affordability challenge but it would be better resolved through more supply, efficient planning and eradicating stamp duty.”
Media contact: Glenn Byres | M 0419 695 435 | E [email protected]