Investor Survey Highlights Need for Balanced Rental Reform in WA

A recent REIWA survey has revealed a strong message from property investors: a balanced approach to rental reform is crucial for the future of Western Australia’s rental market.

The survey, focusing on key housing issues, underscored the sensitivity of investors to changes in property tax and tenancy legislation.

Key Findings

• Tax and Legislation Impact: A staggering 83% of respondents indicated changes to property tax would influence their decision to sell investment properties, while 74% cited changes to tenancy legislation.
• Investor Concerns: These results highlight the significant impact potential policy changes have on investor confidence and their willingness to remain in the rental market.
• “Mum and Dad” Investors: It’s important to remember that approximately 70% of investors are “mum and dad” investors, owning just one property. They are a critical part of the rental landscape.
• Supply and Affordability: The survey emphasizes that supply and affordability remain primary concerns in the WA housing market.
• Private Investor Role: Private investors provide 85% of rental housing in WA, making their stability vital.

Historical Context and Current Situation

REIWA CEO Cath Hart highlighted the historical sensitivity of investors to regulatory changes, citing the impact of COVID-19 rental legislation.

• 2020-21 Exodus: The 2020-21 legislation, following a period of declining rents and high vacancies, contributed to a significant investor exodus, reducing rental supply by approximately 20,000 properties.
• Recent Improvements: The current, more balanced legislative environment, including the 2023 Residential Tenancies reforms and incentives for short-term and vacant properties, has contributed to recent improvements in rental stock.
• WA’s Balanced Approach: WA’s approach contrasts with other states, like Victoria, where punitive measures have led to a decline in rental property numbers.

Looking Ahead

• Continued Need for Balance: While WA’s rental market has seen improvements, there’s still a need for further balance.
• Investor Stability: Maintaining stable and balanced regulatory settings is essential for both tenants and property owners.
• Importance of Private Investors: Given their critical role in supplying rental housing, ensuring investor confidence is paramount.

In essence, the REIWA survey reinforces the need for policymakers to prioritize a balanced approach to rental reform, ensuring a stable and sustainable rental market for all Western Australians.

Contact Holdsworth Real Estate today to find out more!