Western Australia tenant groups push rent cap as affordability pressures deepen

Traders Union
All News
Economic Data
WA rent cap debate

Highlights

Make Renting Fair Alliance's report projects Perth tenants could save $33,000 and regional tenants $30,000 over five years under a 2 percent annual rent cap.
WA government maintains opposition to rent caps, citing potential market risks, despite restricting landlords to one rent increase per year in 2023.
Real Estate Institute of WA warns proposed rent controls could deter investment and exacerbate the ongoing rental housing shortage.

Rent cap proposal and tenant savings

As reported by ABC News, the Make Renting Fair Alliance is calling for annual rent increases to be capped across Western Australia, arguing that "runaway rents" have outpaced both inflation and wage growth.

Its "Cap Still Fits" report, released today, says Perth tenants could save almost $33,000 over the next five years if a 2 per cent cap on rental increases is introduced this year. Regional renters could save about $30,000, based on an average rent of $710 a week, while tenants in suburbs including Churchlands, Scarborough and Fremantle are projected to record some of the biggest savings. In regional centres such as Karratha, Exmouth and Port Hedland, savings could reach as much as $58,812 over five years.

Alliance spokesperson Kate Miller says rental market stabilisation is long overdue and argues tenants need more certainty over housing costs. A separate survey cited by Everybody's Home finds two-thirds of people would struggle with a rent increase of $20 a week, underscoring mounting affordability strain across the market.

Government resistance and market impact

The debate comes as the WA government continues to rule out rent caps, despite having introduced rental reforms in 2023 that restrict landlords to one rent increase a year. Commerce Minister Tony Buti says the government has taken a number of steps to protect renters, but rent capping is not under consideration because of concerns about unintended consequences for the market.

Those pressures are evident in Broome, where financial counsellor Veronica Johnson says she recently faced the prospect of homelessness after her lease ended. She says the rent on her unit has risen from $480 a week in 2021 to $740, and that the only similar option available in the same complex is priced at $1,000 a week. Johnson says she is only able to afford the higher rent because her employer is helping with the cost.

Industry groups remain opposed to a cap. Real Estate Institute of WA president Rob Mandanici says rent controls may provide short-term relief for existing tenants but risk discouraging investment and worsening the shortage of rental homes for those still trying to secure accommodation.

In our earlier article on Pakistan’s push to expand priority-sector lending, we covered plans to widen bank credit for housing, agriculture and SMEs as part of a broader growth strategy. The report outlined targets for financing housing units, streamlining mortgage applications, and using incentives and regulatory reforms to get banks to increase lending to households and small businesses.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.