Rental caps ruled out for Queensland in election debate
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Queensland Premier Steven Miles has confirmed the state Labor government will not pursue rental caps, effectively closing the door on the controversial housing policy.
The announcement came during the first election debate between Miles and Opposition Leader David Crisafulli on 3 October.
Both leaders ruled out implementing rental caps ahead of the Queensland election scheduled for 26 October 2024.
This clarification follows Miles’ earlier comments to reporters last week, where he had left open the possibility of rental caps.
With Queensland now firmly against the policy, the Australian Capital Territory remains the only jurisdiction in Australia with rental caps in place.
The ACT law prohibits landlords from raising rents more than 10 per cent above inflation, as measured by the consumer price index.
The Real Estate Institute of Queensland (REIQ) welcomed the commitment from both major parties to reject rental caps.
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REIQ CEO Antonia Mercorella said: “This confirmation will help restore confidence to existing investors and provides appealing certainty to future investors.”
Mercorella added: “Investors could not be expected to keep bearing the responsibility of housing the majority of Queensland’s rental population in circumstances where their costs were subject to normal market conditions and inflationary pressures, while tenants’ costs were capped by legislative intervention.”
While acknowledging that rents have “materially risen” in Queensland since 2020, Mercorella emphasised that “rent caps are not the answer”.
The REIQ CEO warned that rental caps could potentially lead to “decreased rental housing supply, a deterioration in the standard and quality of rental properties and their inclusions, stifled tenant mobility and potential higher rent increases at rent review times”.
Mercorella noted some signs of rent stabilisation due to reduced demand from denser household formation.
She said: “History tells us the best way to stabilise and keep rents in check is to maintain a healthy vacancy rate by ensuring there is adequate housing supply.”
The debate over rental caps in Queensland follows Prime Minister Anthony Albanese’s statement last year that no federal mandate around rental caps would be issued.
Albanese had described the prospect of negotiating on behalf of eight states and territories as “absurd”.