REIWA has expressed its extreme disappointment with the WA Government’s decision to extend the emergency period tenancy legislation for all residential properties to March 28, 2021.

REIWA said this move has disregarded the needs of landlords and will make it much harder for tenants to find a property.

At a Glance:

• WA Government has extended the emergency period tenancy legislation for all residential properties to March 28, 2021
• With the 12 year low vacancy rate REIWA expect 30-40 per cent of the housing market to be investors, whereas they only make up about 10-15 per cent
• REIWA president predicts a rental crisis could happen

REIWA President Damian Collins said the decision to extend the emergency period in its current form, makes no economic sense and will ultimately lead to higher rental prices and fewer rental properties available when the emergency period ultimately comes to an end.

"A number of landlords  are very disappointed (at the WA Government's decision)," said Mr Collins to WILLIAMS MEDIA.

"The rental market in Perth has reduced by $100 per week and if you've been an investor from 2015 to 2020 you've already lost 20 per cent of your value.

"And just when the market is showing signs that investors can get ahead, the government kills off any recovery.

"We are heading to a rental crisis."

Mr Collins said with the 12 year low vacancy rate investors would make up 30-40 per cent of the housing market.

"We are only getting 10-15 per cent of properties by investors, as people are staying on the sidelines and will continue to do so," said Mr Collins.

"If we keep going at the current rate, there will be nothing to rent."

REIWA members are responsible for over 160,000 rental properties in WA and have reported just one per cent of private tenancies have been unable to meet their full rental obligation with arrears at record lows.

“The Perth vacancy rate has dipped to 1.6 per cent and extending the ban on rental increases will see a sharp price increase down the track rather than small incremental increases,” said Mr Collins.

“In addition, sitting tenants whose rents are under market will not move, putting those who don’t have a home in an even more vulnerable position where they will face the distinct possibility that they cannot get a property.”

Mr Collins suggested that instead of an extension with the law as it is, the government should have included extra criteria to ensure those who are seriously impacted financially by COVID-19, will receive the support they need.

“The government has allocated $30 million for rental support and has used very little of it," said Mr Collins.

"The better outcome would have been to use those funds for those still affected by COVID-19 and let the rest of the market return to normal conditions.

“In a time when we need more investors entering the market to help build up rental stock supply, we are putting up barriers to not only prevent new investors, but also not helping those currently providing a basic human need – housing for all West Australians.”

Mr Collins told WILLIAMS MEDIA,  REIWA would not be taking the decision lying down and is encouraging all landlords to write to their local members.

"It is a bad policy decision and will make things worse," said Mr Collins.

"I feel sorry for tenants who are not in the market as there is already alot of competition and it will only get worse."

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