THE boss of real estate group First National has called for the state government to provide social housing and host a summit on the growing rentals shortage.
Ray Ellis said the only way to relieve rental pressure on tenants over the next decade would be to increase housing supply.
“If we don’t get more supply, with landlords exiting the market, it’s only going to get worse,” Mr Ellis said.
“I’m calling for our state government here to have a summit … about how we are going to release more supply into our marketplace.”
Mr Ellis said his Mildura team fielded 16 calls from landlords this week who are seeking to sell their investment properties due to financial stress.
“Almost 70 to 80 per cent of the rental market in Victoria is supplied by people who earn under $80,000 a year, they’re what we call mum and dad investors,” he said.
“The vast majority of people own one house and it’s the great Australian dream to make capital growth, maybe have some rental return.
“Since the state budget, many landlords throughout the state have enquired about selling their property.”
He said state governments have addressed supply issues before, with post-World War II social housing policy and programs, when housing commission homes were being built.
“Most of them were built by state governments and they were a good entry for people to get into the market and get ahead in the housing arena,” Mr Ellis said
“There’s no debate in Australia, and particularly in Victoria, about the lack of supply.
“In Victoria now, there’s in excess of 37 to 40 thousand people waiting for social housing.
“Until the state government in Victoria returns to doing something like that again … just relying on private individual investors, who are exiting the market, is just going to make it worse.”
