A LACK of State Government funding for new housing in rural communities was hampering access to affordable accommodation, according to real estate agent Greg Fathers.
Mr Fathers was among a of group of agents who met Northern Victoria Region MP Gaelle Broad last week discussing their concerns about the impact of government policy on rural and regional housing.
He said the budget for new housing was being directed to larger centres and changes to legislation had many landlords re-assessing their future as property owners.
“The rural rental market is drying up because of the economic pressures being put on landlords,” Mr Fathers said.
“Small towns are getting a double whammy and a lot of owners are deciding they don’t want to be landlords.”
Ms Broad said a raft of new State Government taxes, red tape and regulations had sparked major problems in the housing market.
“This is an unfolding disaster. Labor State Government policies are destroying Victoria’s housing market.” Ms Broad said.
“The conversation with local real estate agents revealed major problems in the housing market.
“Labor’s policies are driving up the social housing waiting list, as property owners are selling their properties in droves.
“The Labor State Government is pushing people out of rental properties onto the social housing waitlist. People who never sought social housing are now being forced into it. 
“Agents told me that landlords felt they had been ‘bashed over the head’ with new State Government taxes and regulations, and rising interest rates are adding to the burden.” 
The Real Estate Institute of Victoria has found the total number of properties available for rent across Victoria in May 2023 was 21.8 per cent less than March 2020.
“A massive number of rental properties have disappeared from the market, which is reducing the number of houses available to rent, and driving up rents,” Ms Broad said.
“As landlords leave the industry, these homes are often sold to first home buyers who can no longer afford to build a new house.
“It’s a vicious cycle, and the agents reported that both landlords and tenants are suffering.
“They told me that this issue is often portrayed as landlord versus tenant, but in reality the vast majority of landlords and tenants look after each other,” Ms Broad said.
She said the Government’s new land taxes had also made it very hard for property developers who wished to subdivide and build new homes – further reducing the number of new houses available.
Increased Payroll Tax and WorkCover charges have also impacted the agents’ ability to run their own businesses.
Ms Broad said she was concerned that the Government was attacking the housing market at a time when the state was facing major housing supply and affordability issues. Ms Broad also raised concerns about the State Government’s soaring state debt, and dependence on property taxes.
Around 60 per cent of the State Government’s revenue comes from property.
“The State debt is so enormous under Labor that we are paying $15 million a day in interest.  ... stamp duty on property has been a huge revenue raiser for the Government, but what happens when they are driving the property market into the ground?
“Labor has introduced more than 50 new or increased taxes and charges,”  Ms Broad said.