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The Canberra Times
The Canberra Times
National
Lucy Bladen

Barr says there won't be a moratorium on rent increases

Chief Minister Andrew Barr has rejected calls from the ACT Greens for a moratorium on rent increases. Picture: Jamila Toderas

The ACT government will not place an interim ban on rent increases for the duration of the coronavirus pandemic.

It came as the ACT Greens called for a moratorium on rent increases for those struggling during the pandemic. This followed reports some tenants had faced a rise in their asking rent.

Chief Minister Andrew Barr said he would not place a moratorium as those who had not lost income should not be exempt from an increase that was in line with the consumer price index.

"If you are completely unaffected then there is no need for a special intervention for you at this point in time," he said.

"Frankly if someone on $200,000 a year has their rent go up by $10 a week and they have had no impact on their income and that was part of a scheduled increase consistent with consumer price index then I don't think there is an urgent need for the government to be stepping in in those circumstances."

But Mr Barr said renters who had lost income would be protected from a rise under measures introduced through the government's COVID-19 emergency bill.

He said the government would intervene in a circumstance where an increase had been applied to someone who had lost income as a result of the pandemic.

"In circumstances where an individual has been impacted by COVID-19 and so their income has reduced there are protections in place for tenants in that situation through COVID-19," he said.

"Where we would intervene is to low and moderate income earners and those who have lost income as a result."

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ACT Greens housing spokeswoman Caroline Le Couteur called for the moratorium on Wednesday for tenants "struggling during the pandemic".

She also called for a temporary tenancy mediation service to be set up and $50,000 given to the Tenants' Union ACT to run the service.

Mr Barr said there were existing mediation services but these could be expanded if need be.

"In terms of mediation there are available mediation services in the ACT should that need arise, we will assess the volume of that need and if we needed to provide additional capacity to assist then we would. By and large most people are doing the right thing but there are always exceptions."

However, the Tenants' Union would not run the service rather it would be run by Legal Aid ACT, Mr Barr said.

"We have a tenant's support service through Legal Aid so that may be the more appropriate organisation with which to undertake that work," he said.

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