Latest NewsHome Rents Seen Rising 4% in 2010Friday, 18 November 2016

Rents for homes across Australia increased nationally by a mere two per cent in 2009 - the weakest annual increase since 2002, a new report says.

The figure compares with average annual rent increases of 12 per cent across Australia for 2007 and 2008, Australian Property Monitors' Quarterly Rental Report says.

"It is clear that in 2009 rents were generally kept in a holding pattern as landlords and the market waited to see the end of the global financial crisis," Matthew Bell, an economist and spokesman for Australia Property Monitors, said in a statement.

The situation was likely to be short-lived, he warned, due to the likelihood of interest rates rising in 2010.

"Rising interest rates and land tax increases will impact on the bottom line for landlords, forcing some of these costs to be passed on to renters," Mr Bell said.

He predicted Sydney rents would increase by at least double last year's rate, with the median rental house in Sydney likely to approach $500 a week in 2010.

Melbourne property rents were "totally flat" in 2009 but were expected to rise by five to seven per cent in 2010, in line with their long-term growth rate, Mr Bell said.

In Perth, median home rents could hit $400 a week - a rise of 11 per cent compared with 2009.

Brisbane rents are likely to increase from an average $360 a week in
2009 to $400 in 2010.

"Although rents should rise across the board, an improving employment outlook will mean more income for renters to be able to cope with these increases in 2010," Mr Bell said.

"However, this is just another cost on already tightening budgets for those Australians that did lose their jobs or were forced to move to part-time work during 2009," he added.

"The rental increases set for the year ahead will mean families will have to chase more affordable rentals even further from areas of potential employment."

Meanwhile, federal opposition housing spokesman Gary Humphries said state and territory governments are to blame for failing to release enough land for housing,

He said living standards of thousands of Australians will plummet this year because of the rises.

"At a time where many people are still doing it tough, rentals around the country are tipped to rise," he said in a statement.

"Although there are a number of factors, the biggest is a clear failure of government policy," he said, noting that states had not released enough land to meet housing demand.

"Federal and state Labor need to dig themselves out of this enormous mess for the sake of renters around the country."

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