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News.com.au
a day ago
- Business
- News.com.au
Victoria to ban rent bidding outlawed in major crackdown on price hikes
Victoria's rental market has become a pressure cooker, and desperate tenants are offering hundreds above asking price just to secure a roof over their heads. Would-be renters are forking out far more than advertised prices and offering months of rent in advance in a bid to beat fierce competition across Melbourne, with inspections drawing dozens of applicants and many being repeatedly knocked back. One man, attending his sixteenth inspection in two weeks, told the Herald Sun rent bidding — where tenants offer more than the listed rent — was 'the easiest way' to lock in a lease, especially in the inner suburbs. 'It's been really hard,' he said. 'It's really competitive, especially in these suburbs where people really want flats.' Another renter said he would rent bid if he could afford to, while a third, searching in the northern suburbs with two friends, said someone he knew secured a home by offering six months' rent upfront. 'I think that's fair enough with how competitive it is,' he said. A report by the Victorian Council of Social Services (VCOSS) last year found rental bidding remained an issue despite laws banning landlords and agents from soliciting it, with intense competition often pushing tenants to voluntarily offer more. Tenants Victoria advocacy director Damien Patterson said the practice often flew under the radar. 'It's a really tight rental market; it's likely that a lot of renters are proactively offering higher bids and that'll help them secure a home,' Mr Patterson said. 'Oftentimes it takes place as a discussion between just two people – the person who's making a bid and the agent – so it can really be hard for people to know whether they have lost out.' Mr Patterson said he was 'really pleased' about the new rules. 'We know that everybody needs a home and that renters are looking inside their budget, so it will be fairer when people are only expected to pay the advertised price,' he said. One 27-year-old renter from Melbourne's inner west said he'd been applying for months with no success. 'Every inspection feels like a cattle yard – 10 people lining up for the same house,' he said. 'Agents are asking for everything short of a DNA sample. 'Proof of income, references, extra pet bonds, and even then, agents aren't responding. It's brutal.' The VCOSS report described 'intense competition' in the market, with many renters applying for more than 60 homes before being forced to move into poorer quality or less suitable properties. From November, all forms of rent bidding will be banned under new state legislation that prohibits agents and landlords from accepting or encouraging offers above a property's fixed listed rent. Price ranges and 'offers over' listings will also be outlawed, with penalties of up to $47,422. While agents have long been banned from encouraging bidding, prominent Melbourne buyers' advocate and investor Cate Bakos said desperate tenants often made unsolicited offers in hopes of standing out. 'If someone's been to ten or fifteen inspections, missed out every time, and they're feeling desperate, they start gauging their competition,' Ms Bakos said. 'Most rental inspections are public, and when you're standing in a queue of 20 people, it's pretty clear you're not the only one applying.' Ms Bakos said hoped the new laws would close loopholes. 'The difference with the new ban is that it clamps down on situations where tenants offer six months' rent upfront, or try to 'incentivise' landlords with higher-than-asked payments,' she said. A Richmond agent told the Herald Sun rent bidding was 'not encouraged' but still occurred, especially among renters in shadehouses or student groups, whom some landlords were reluctant to lease to. Consumer Affairs Victoria received 53 contacts about rent bidding in the 2023-24 financial year, but only seven between July and December 2024. While this may reflect a drop in agent-driven bidding, advocates believe voluntary bidding remains underreported. Renters and Housing Union general secretary Harry Millward said conditions had only worsened since that report was published. 'Renters are choosing between heating and eating as they struggle to make ends meet,' Mr Millward said. 'Nobody should be spending more than 30 per cent of their income if they've got another option, but the thing is a lot of people don't have another option.' Investors leaving the market have further shrunk rental supply. Between July and December 2024, Consumer Affairs Victoria received more than 35,000 enquiries about rental issues — including maintenance, lease terminations and tribunal disputes. A CAV spokesperson said the agency was closely monitoring compliance. 'Rental bidding and demanding an unlawful bond amount are breaches of Victoria's renting laws and our renting task-force takes this conduct very seriously,' they said. 'We encourage anyone who has concerns about potential rental bidding or other breaches to report it to us.' Housing All Australians director Robert Pradolin said unaffordable housing had far-reaching consequences. 'With a roof over someone's head, they are more likely to be productive citizens of society and pay taxes and avoid the unintended human consequences that manifest in physical and mental health problems, family violence … and long-term welfare dependency,' Mr Pradolin said. His comments follow growing calls to treat housing as essential infrastructure — on par with roads and health — to ensure Australia's long-term economic and social stability. 'We need to put this in the classification of fundamental infrastructure for a future prosperous country.'
ABC News
11-05-2025
- Politics
- ABC News
Report finds Victoria needs 80,000 new homes in next decade to start fixing social housing crisis
Victoria must build 80,000 new social housing homes over the next decade just to catch up to the national average, according to new data released by housing advocates. The Victorian Housing Peaks Alliance today released the Growing Social Housing report, modelling the state's social housing demand and calling on the government to act. The report found Victoria needs an extra 377,000 social housing dwellings by 2051 to meet the expected total demand for social housing — the term used to describe both public and community housing. The need for 80,000 new homes in the next decade accounts for less than a quarter of that figure, but advocates say it's what's needed to get the state on track. Ahead of next week's state budget, the housing alliance is calling on the government to set a target to build 7,990 new social housing dwellings every year for the next 10 years, and to establish a long-term strategy to achieve that target. Victorian Council of Social Service (VCOSS) CEO Juanita Pope described social housing as "essential infrastructure". "It's like hospitals, schools, roads and emergency services, so it's time to start planning for it in the same way," Ms Pope said. "Strong, sustained investment in growing public housing and community housing should be the number one infrastructure priority for this state. It's the key to solving our housing crisis and other big societal challenges." Victorian Public Tenants Association (VPTA) CEO Katelyn Butterss said every housing issue would worsen without a strong social housing system. "Every Victorian deserves the dignity of having a place to call home and for some, public housing is the only option to achieve this basic human right long term," Ms Butterss said."However, our public housing system has not grown meaningfully in decades meaning many are left sitting on waiting lists. "Social housing, and public housing especially, are key to delivering holistic and affordable housing for everyone." Council to Homeless Persons CEO Deborah Di Natale said more Victorians would face homelessness without action being taken to improve social housing stock. "Every night, tens of thousands of Victorians are forced to sleep in cars, on the streets and in other unsafe conditions," Ms Di Natale said. "The scale of the dire housing shortage demands bold, sustained action. "The Victorian government must urgently commit to a social housing building blitz to prevent this crisis erupting into a human catastrophe." The Growing Social Housing report notes Victoria has the lowest proportion of social housing in Australia, despite the state government's Big Housing Build project aiming to boost housing stock. While the government has housing targets for the private market, there are no strictly defined social housing targets. "In Victoria, the current proportion of social housing is 3.1 per cent. After the Big Housing Build, it will be about 3.5 per cent — still well under the national average of 4.5 per cent (which itself isn't enough to meet demand)," the report notes. "In order to catch up to the national average of 4.5 per cent social housing stock, Victoria needs to build 7,990 new social housing dwellings a year for the next 10 years." Without building 7,990 new social dwellings each year for the next decade, Victoria's proportion of social housing would drop to about 2 per cent by 2051, the report forecasts. The report also notes its target is "modest", with modelling showing the state would need to build 10,700 social housing dwellings a year for the next decade to meet "expressed demand" for social housing — enough to house those on the social housing waitlist as well as those currently receiving social housing assistance. To meet the total demand for social housing — enough for all Victorians who need assistance, including those who haven't formally requested it — the state would need to build 27,900 social dwellings a year. The report comes as the state's social housing waiting list continues to climb, jumping 8.4 per cent in 2024. Latest Homes Victoria data shows 55,024 applicants were on the waiting list for social housing in the December 2024 quarter, compared to 50,732 the previous year. The Victorian Housing Peaks Alliance includes VCOSS, Community Housing Industry Association Victoria, VPTA, the Council to Homeless Persons, Safe and Equal, Aboriginal Housing Victoria, Tenants Victoria and Justice Connect.
