![Rent freeze could force more people out into the cold Rent freeze could force more people out into the cold](/images/transform/v1/crop/frm/379mw9XPZ7UFRqmwjWhGKkr/2d756587-b9e1-41a6-92c6-9cb14aa4b783.jpg/r0_356_5401_3394_w1200_h678_fmax.jpg)
A rent freeze would likely add to the housing shortage in south-west Victoria, according to Juanita Russell from Wilsons Real Estate.
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Ms Russell, who works in property management, said additional legislation imposed by the state government was already increasing costs for landlords.
"The issue is that the property costs for rental providers are driving up the rental prices and we are seeing less and less affordable properties reaching the market," Ms Russell said.
"If a rent freeze were to be implemented, I believe you would see more shorter-term lease agreements and potentially less renewals as owners may seek to capitalise on the open rental market as a way to keep up with increases to property costs rather than keeping long-term renters at a capped rental amount.
"I believe this would significantly and negatively impact on the homelessness crisis."
Ms Russell said landlords had also been hit with rising interest rates.
"The idea of an investment property is primarily to cover its own costs but when the rates and costs increase and the rents remain unchanged, many owners will begin to see the costs outweigh the benefits and there is a much greater chance that they will look to sell instead of taking on the risk," she said.
Ms Russell said there was high demand for rental properties in the south-west.
"For reasonably priced rental properties, we are seeing an excess of applications," she said.
![Port Fairy real estate agent Garry Lockett has seen an increased number of investors exit the market. Port Fairy real estate agent Garry Lockett has seen an increased number of investors exit the market.](/images/transform/v1/crop/frm/379mw9XPZ7UFRqmwjWhGKkr/fff17a2a-f7b0-434a-8e50-35994030079a.jpg/r0_29_1102_649_w1200_h678_fmax.jpg)
Lockett Real Estate agent Garry Lockett said he saw a number of owners exit the investment market when the state government introduced additional regulations last year.
"The state government is killing the market for rentals and creating a shortage," Mr Lockett said.
"A rent freeze would scare more off and decrease the number of rentals."
Mr Lockett said investors exiting the property market were making it harder for people to find an affordable rental.
"Young people can't afford to buy a home but they can't find one to rent either," he said.
On Friday, the Real Estate Institute of Victoria said a rent freeze would increase homelessness.
It has launched a campaign which aims to show the state government a rent freeze might save renters some money in the short-term, but it could actually cost them a place to live in the long-term.
The REIV said the state government should look at failed attempts of introducing rent caps in Stockholm, New York, Berlin and San Francisco.
REIV chief executive officer Quentin Kilian said the state's vacancy rates were already under two per cent and any reduction in supply would make matters worse for renters.
"Thousands of rental providers are selling up their investment properties to get out of a market that is far too regulated, taxed and tinkered with," Mr Kilian said.
He said 90 per cent of REIV Members had already reported an increase in sales appraisals from their landlord clients.
"To add another shortsighted, ill-considered condition, such as a rent cap, is just reckless - it will without doubt increase homelessness as more investors leave the market and could possibly harbour a black market rental sector."
Member for South West Coast Roma Britnell said a proposed rent freeze would add to the city's housing crisis.
She said the state government had already made changes to legislation in its bid to make rentals more affordable.
Ms Britnell said MP Jacinta Allan talked about one of these changes in parliament last week.
"One of the changes was that landlords are not allowed to raise rent more than once a year," she said.
"Well my comment is 'that hasn't worked'."
Ms Britnell said the government needed to go back to the drawing board if it wanted to solve the state's housing crisis.
"I think the REIV and the experts on market forces are correct in saying a rent freeze will make things worse," she said.
"The problem is supply and the government needs to go back to the root cause.
"It needs to start by removing the windfall tax."
Ms Britnell said the state government's changes had already "caused massive damage to the market".
She said she had spoken to many constituents who were struggling to find an affordable rental.
One of those people is a single mother with three children.
The woman, who asked not to be named, said she had applied for about 18 properties in the past seven months.
She works full-time but is struggling to find suitable properties in her budget of about $450 a week.
"We currently don't have a property," the woman said.
She said she had applied for properties that cost up to $750 a week, but would struggle to keep up with costs if she had to pay that.
The woman said the battle to find a suitable home for her family was weighing heavily on her.
"I don't think many people understand the struggle as a parent to not be able to provide a stable roof for young, growing children."
She said she didn't know what to say when her children asked her why they couldn't find a home of their own.
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