Calls for rent cap to stop WA's spiralling rental market
Housing advocacy groups say research shows a statewide rental cap could save tenants an average of $33,000 over the next five years.
A new report by the Make Renting Fair Alliance urges for a cap on rental prices in Western Australia, as the group states that two-thirds of people would struggle with a $20 weekly increase. The alliance argues that runaway rents have outpaced both inflation and wage growth. Despite objections from the WA government, which claims that caps could reduce investment in rental housing and cause harm to tenants, the alliance proposes capping rental increases annually across the state.
The Cap Still Fits report estimates that Perth tenants could save nearly $33,000 over five years, while regional renters could save around $30,000, depending on their location. Those in metropolitan suburbs Churchlands, Scarborough, and Fremantle could save the most, with tenants in regional areas like Karratha, Exmouth, and Port Hedland potentially saving up to $58,812 over five years.
Alliance spokesperson Kate Miller emphasized the long-overdue need for rental market stabilization, stating that rent should not be a free-for-all. Veronica Johnson, a financial counsellor from Broome, recounted her own experience of rent increases from $480 to $740 per week over the past few years, ultimately leading to the risk of homelessness.
The WA government introduced rental reforms in 2023 but stopped short of implementing caps or freezes, citing potential unintended consequences on the rental market. However, renters' advocacy groups argue that even small increases, such as $20 a week, are becoming increasingly unaffordable for tenants.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
