28 June 2022
Rent increases will be capped at the rate of CPI and restricted to just once every 24 months, under a Greens’ Bill to be introduced next week.
The Residential Tenancies (Rent Control) Amendment Bill will be introduced into state parliament next Wednesday by Greens’ Housing Spokesperson, Robert Simms MLC.
“Rent prices are skyrocketing out of control. At the moment, South Australian renters are at the mercy of the market and a housing system that’s stacked against them. The parliament needs to act,” Mr Simms said.
“We need rent controls to ensure that renters are protected. Rent increases of 10 to 20 per cent are crippling for families. Without reform, I fear more South Australians will be plunged into poverty and homelessness.”
Data from the SA Housing Authority released earlier this month showed an increase in rental prices of 20 per cent over the last 2 years. On average rental prices have increased from $350 to $420 a week.
In South Australia, those on periodic or month to month leases can face a rent increase once a year (or more frequently if negotiated). There is no cap on how much a landlord can increase rent.
Many places around the world have rent controls in place including New York, Ireland and Spain.
How would rent control work?
Example 1: If you rent a room in a share house for $170 per week, your rent would be capped at an increase to $178 per week – an $8 increase, once in 24 months (based on CPI from March 2022)
Example 2: If you rent a house or apartment for $400 per week, your rent would be capped at an increase to $420 per week – a $20 increase, once in 24 months (based on CPI from March 2022)