Rental unaffordability significantly impacts biological age more than unemployment or smoking, a study found on Oct. 12.
Australia’s University of Adelaide and England’s University of Essex study surveyed 1,420 adults in Great Britain about tenure, government financial support, central heating, and location (urban or rural). According to the researchers, results are likely relevant in Australia.
It found that rented homes’ insecurity and unaffordability drove biological ageing, where tissues and cells are damaged irrespective of chronological age.
University of Adelaide’s Australian Centre for Housing Research Leader Amy Clair said as a result, health impacts should be essential in shaping housing policies.
“Policies to reduce the stress and uncertainty associated with private renting, such as ending ‘no-grounds’ evictions, limiting rent increases, and improving conditions may reduce the negative impacts,” she said.
However, some conditions, such as arrears and pollution, were linked with biological aging regardless of renting or owning.
Further, the researchers found that epigenetic impacts—the gene changes caused by behaviour and the environment—of renting are potentially reversible; therefore, health interventions for renters are “all the more necessary.”
The study was on an all-white and European population. Therefore, there are limitations to the results.
Victoria Needs 2 Year Rent Freeze: Greens
To protect renters from unaffordability, the Victorian Greens called on the state Labor government to implement a permanent two-year rent cap on rent increases.They added that the government should regulate short-stays as secure long-term rentals, enforce the vacant property tax, crack down on rental bidding, and enforce better rental standards, including energy efficiency.
It comes after rents are rising four times faster than wages but could rise another 11.5 percent across Victoria during 2023, the Greens said.
Victorian Greens renters’ rights spokesperson, Gabrielle de Vietri, said the crisis is out of control.
“We’re seeing young adults stuck in their childhood homes, retired women sleeping in cars, and families with school kids living in tents. I’ve heard from renters struggling with rent hikes of $200 per week,” she said.
Further, she said one in three Victorian renters spent more than 30 percent of their income on rent, which is the “very definition of unaffordable housing.”
Skyrocketing rents contributed to tenants’ rising cost of living. Still, the government had a “critical role” in protecting them from financial stress and housing insecurity as part of their housing plan.
“We need urgent relief to prevent more households from being pushed into financial stress or homelessness,” Ms. de Vietri said.
Rental Caps Could Do More Harm Than Good
However, Treasury’s Housing Strategy Branch Assistant Secretary Nicholas Dowie said rental caps could have negative consequences.Mr. Dowie said they might benefit higher-income earners, affect rental stock quality, reduce rental supply, and increase rental costs in the long term.
When asked how rent caps affect supply, Mr. Dowie said owners might need to decide whether to keep those properties available to rent or sell them on the owner-occupier market.
“Some owners decide to sell their stock off, often bought by those who will live in them as owner-occupiers or those particular buyers choose to live in them themselves. The net impact is a reduced supply of homes to rent,” he said.
“There was likely to be a permanent reduction in rental stock due to that control being in place.”
Meanwhile, the Property Council of Australia said the Green’s push for rent capping would worsen the rental crisis and offer no feasible solution.
Further, rent caps would reduce investment in the “shrinking” market due to “poor” state planning and overseas investor surcharges.
Victorian Property Council Executive Director Cath Evans argued a shortage of new residential stock drove the affordability crisis, not landlords charging unfair rents.
“The idea of rent capping as a solution to rental affordability has been thoroughly debunked and is a completely counterproductive policy option that will disincentivise investment and reduce the supply of rental accommodation—putting upward pressure on rents,” Ms. Evans said.
“The private rental market provides the vast majority of rental accommodation. These are mum and dad investors who are already struggling to reconcile increased land tax bills with the income they receive from tenants,” she said.
When faced with the prospect of rent caps, she said those investors would be “highly incentivised” to exit the market, pulling desperately needed rental supply from an already stressed market.
“Delays and inefficiencies in our planning system predominantly drive supply issues in Victoria. Inquiries into rent capping pushed by the Greens will distract from the broader need to focus on cutting through planning to boost housing supply.”
Greens are Setting up For Political Failure: Prime Minister
Prime Minister Anthony Albanese said the Greens proposed rent caps are “just playing politics.”Mr. Albanese said, “I’m pretty happy to take responsibility for things in the Commonwealth domain. We’ve done that; we’ve provided an additional $2 billion of funding just in June, and of the 30,000 homes [expected to be built], 4,000 will be reserved for women and children escaping domestic violence.
In June, the Albanese Government announced a $2 billion Social Housing Accelerator to deliver thousands of new social homes across Australia.
This investment will build more housing for Australians in more parts of our nation.
“There'll be additional funding for veterans at risk of homelessness, as well as for the repair of Indigenous housing in remote communities. So this is a well thought out program, it is a good program, and it should receive the support,” he said.
“The key is not rent caps; the key is fixing planning.”
