Is a renters revolution nearing?

Gerry Georgatos
A renters rights movement is gathering momentum in Western Australia with its first impetus surprisingly from the state's South West, and in particular from the Blackwood Valley.

Many tenants are tired of being hit every six months with hefty rent increases which outstrip consumer price index rises and wage rises. Bridgetown renter, Louise Fleay had a $50 rise in rent over 18 months, from $220 to $270 while she had no wage increase nor distinguishable benefits from commonwealth and state assistance. Another Bridgetown renter, who does not want to be named, had a $50 rise in one hit, from $270 to $320.

WA Renters Alliance coordinator, Lea Keenan said renters stress is worse than mortgage stress. "Not only are renters worse off financially, without equity and therefore without security, however in terms of renters rights they are negligible."

"There have been increasing complaints that many renters are only able to secure six month rents, and this is abominable - it erodes any sense of home security," said Ms Keenan.

Realtors in Bridgetown, Donnybrook and other nearby towns have confirmed that have become increasingly prone to pursing six month leases rather than one or two year rental leases in order to ensure "good clientele for the owners". Ms Keenan said that there should be legislation against this practice.

"40% of Australians who are in private rentals, and I am not described social housing, should not be discriminated against and should be assisted to feel a sense of home for themselves and their families. Having to relocate comes with great stress, it is accepted as traumatic by a number of studies, and it comes at great financial cost especially for families who are in the bottom 30% of income," she said.

Associate Professor of economics at the University of Western Sydney, Steve Keen, said Australia has created "one of the biggest housing bubbles on the planet." The renter is carrying a disproportionate burden, and when the bubble bursts the renters will be left worn out.

Australian Council of Social Service chief executive officer Clare Martin said housing stress must become the priority social policy challenge. "Some 850,000 Australians are in housing stress, with rental costs gobbling up a high proportion of their income," Ms Martin said.

"A third are low-income households. Add to that the 105,000 Australians who are homeless and you start to get a real idea of how big the problem is."

Individuals who all of a sudden are not able to afford their rentals in towns like Bridgetown and Donnybrook have finished up at $20-a-night sharing a two or four bed room at the Kirup Lodge or for $25-a-night at the Donnybrook Hotel. The Donnybrook-Bridgetown Mail has spoken with some folk who are no longer able to afford rents and who are now itinerant.

In last week's edition Ms Fleay said, "When we put things in context, landlords are hitting us up hard for rent trying to make as much out of their investment however it is at the expense of our quality of life and it is stressful because as I say in context there is less income down here, less jobs, and proportionately I'm paying just as much if not more of my total income in rent. There are not many full time jobs down here and I have two part time jobs to make ends meet."

"Bridgetown should not just be a place to be afforded by well off retirees, it should be a healthy community for everyone."

The Renters Alliance is working on a schedule of rights, and various policies, for renters. "We must ensure reasonable security in terms of tenure for families, without diminishing the rights of investors in terms of the proper care of their property, however it must be recognised that where a house is rented it becomes someones home. We will be pushing that someone should only be moved out if the investor wants to move in themselves and make it their home. In some European countries this is the case, you can't move out people unless you will live there, and if you sell the house the tenancy is protected. Renters do have to take care of a property, however inspections should be six monthly or yearly or there needs to be clear evidence why a landlord or agent needs to access the property any more regularly than say once a year. Rent should be guidelined by CPI and by the size of the home, not by the rapacious greed of investors," said Ms Keenan.

The Renters Alliance will liaise with all political parties however their numbers are swelling since they came to light a couple of months ago, and they will highlight renters rights with a state parliament rally in August however the Blackwood region may experience the first renters rights rally in the state come July.

"It may surprise many that the first rally to highlight the issues is not in the north west where rents are just insane, or in Perth where rents have toppled the $400 a week mark, however in the south west. The south west has income for each person per capita than the metropolitan and the north west, and a significantly high population - and this is a good start in gathering momentum, and in not making this issue predominantly city-centric," said Ms Keenan.

"We will soon decide whether our first effort will be in the Blackwood, maybe Bridgetown or Donnybrook or in Bunbury or Margaret River where we have the same issues. In the end this is an Australia-wide issue and unless I'm stupid it will become a hot topic in all coming elections, state and federal."

The Australian Institute of Health and Welfare Housing Assistance Unit's David Wilson said, "The stresses are showing up even after assistance has been provided. For example, 35% of households receiving Commonwealth Rent Assistance are still, after assistance, paying more than 30% of their household incomes on their rent, which is a common measure for housing stress."

Australians for Affordable Housing (AAH) have asked the federal government to increase Commonwealth Rental Assistance by 30%, and which would amount to between $16 to $25 extra a week for households.

South West, Blackwood-Stirling MLA, Terry Redman said he readily acknowledged that housing affordability, whether for renters or buyers, is the biggest cost of living issue for most Australians.

“Pressure on the Perth rental market is clearly having a flow-on effect in country areas including the Warren Blackwood region."

“The Liberal-National Government’s Affordable Housing Strategy released last year is aimed at increasing the affordability of affordable housing in Western Australia and delivering 3,500 more social housing dwellings by 2013," said Mr Redman.

“Increasing the supply of public housing is important but as housing stress is more evident in areas where incomes are low, it’s also important to focus on job creation to lift incomes in regional areas. This is why a major focus of the Royalties for Regions program is on stimulating regional economies to create more opportunities for both full and part time employment."

“Royalties for Regions is also funding the Country Age Pension Fuel card and has put major funding into the Patient Assisted Travel Scheme to help offset some of the additional costs that regional residents face,” Mr Redman said.

Greens MLA Giz Watson, who will be challenging for a seat in the south west in the coming state election said that housing stress is one of the negative effects of WA's mining boom and has been compounded by the Global Financial Crisis. "A housing market traditionally supplied a family house on a large block," said Ms Watson.

"One of the reasons for rents rising is the lack of diversity of housing, forcing all types of household to compete for the same houses. Young singles are competing with families for the four bedroom, two bath homes."

Ms Watson said the number of renters increasing are because of the high price of buying a first home.

"Housing diversity is critical to meeting the need for accommodation."

"The Greens would like to see a better tax system to increase the availability of a diversity of housing supply, including small rentals."

Ms Watson said providing more options for high density living is critical to meeting housing needs and reducing pressures on the environment. "This increased density in existing towns has to be achieved with community support and good discussion about how to deliver liveable towns."

Collie's Labor parliamentarian Mick Murray said housing needs are a main concern of his constituents, including rental prices and house prices. He said there was a demand for more social housing.

"Homeswest and affording housing needs are not being met in Collie. At one stage there were 70 family groups waiting public housing in Collie," said Mr Murray.

Mr Murray's office is contacted on a daily basis by people seeking affordable accommodation.

"Last month, housing minister Troy Buswell admitted in state parliament there were more than 24,000 outstanding maintenance requests lodged with Homeswest."

"The problem lies in that there are Homeswest properties sitting vacant because contractors are not being used because of the funding crisis," said Mr Murray.

Mr Murray believes many private renters who are doing it tough have been forced out of their right to social housing. "The waiting lists are so long, four years or more, so they are taking the affordable housing that low to middle income earners who are not eligible for Homeswest housing would normally rent."

Ms Keenan said what needs to be understood is that rents are too high for all types of homes, and they need to be brought down, and this in effect will go a long way to remedying the renters crisis and most housing stress issues.

Curtin University academic and social researcher, Colin Penter has long studied the housing crisis and he said that the Renters Alliance, Ms Keenan, and Australians for Affordable Housing are right on the mark and that the political parties need to do more, however all ways forward must be underlain with policies and guidelines.

"This is a huge issue that has been neglected and marginalised by all sides of politics and by the housing industry, and by non-government organisations who supposedly advocate for affordable housing," said Mr Penter.

"The Renters Alliance can grow into something big."

It is growing according to Ms Keenan, and rallies in the Blackwood and the south west in July will evidence the crises and the "call for a renters revolution and the making of housing affordable to everyone, and a home for everyone as natural rights."

http://indymedia.org.au/2012/04/22/renters-stress-hits-the-blackwood-tim...

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