Media Releases

07
Sep

Angus – Real Estate in Chaos

The Shadow Minister for Consumer Affairs, Neil Angus MP, said that Victoria’s real estate market is in chaos following the extension of Stage 4 restrictions announced on the weekend.

This announcement, coupled with the legislated extension of the COVID-19 moratorium to 28 March 2021, have plunged the real estate industry, including commercial and residential landlords and tenants into a crisis.

With on site inspections prohibited and auctions allowed only online, Melbourne vendors and prospective purchasers are left unable to transact.

In addition, as well as mandated rent reductions at the expense of landlords, some tenants are refusing to pay rent or negotiate with landlords at all, despite the government providing residential tenants with substantial financial support.

There is also a backlog of around 4,000 rental cases at the Victorian Civil and Administrative Tribunal and almost a thousand cases still to be resolved through the Dispute Resolution Centre of Victoria process.  With Consumer Affairs Victoria averaging 100 new claims daily, the system is totally overloaded with no solution in sight.

There are multiple cases of tenants claiming the government’s rent relief grant without any landlord interaction or proof of hardship being provided.  While the need to provide tenants struggling to pay their rent with support is not questioned, the evidence that the system is being abused is rife.

Comments attributable to Shadow Minister for Consumer Affairs, Neil Angus:

“The government needs to provide a clear way forward for the real estate industry, not provide more platitudes and empty words.”

“The dispute resolution process in Victoria is a shambles, with a further six month extension to an already overloaded system set to exacerbate the problems.”

“The government needs to address this situation immediately and meet with industry bodies to provide a clear way out of the mess it has created.”

Neil Angus MP

Shadow Minister for Consumer Affairs

State Member for Forest Hill

 

Media Contact: Neil Angus MP (03) 9955 2501 neil.angus@parliament.vic.gov.au

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