Victoria lockdown: renter grants welcomed amid call for eviction ban
One-off relief payments for Victorian tenants struggling to pay rent due to lockdowns have been labelled a “much-needed … first step” towards helping those who are “really hurting”.
But tenancy advocacy groups are still calling for a moratorium on evictions to be reinstated as the state’s sixth lockdown drags on.
The grants of up to $1500 will be paid directly to landlords on behalf of eligible renters.
RELATED: Tenants Victoria pushes to reinstate a moratorium on evictions
Influx of eviction, rent hike notices generated after Covid moratoriums end
Complete guide to Victoria’s rental reforms
Housing Minister Richard Wynne noted recipients had to be spending more than 30 per cent of their income on rent, and had to have lost 20 per cent or more of their income under the state’s Covid restrictions.
An annual income cap of $62,860 for singles and $94,300 for couples also applies, and you cannot have more than $2000 in savings, according to Tenants Victoria.
Mr Wynne labelled the grants “a targeted initiative that is actually going to make a significant difference to people’s lives”.
“We absolutely understand just how critical it is that particularly those who are vulnerable have safe, affordable and secure housing in the private rental market,” he said.
Tenants Victoria chief executive Jennifer Beveridge welcomed the move, noting a large number of renters were contacting the advocacy group and “telling us they are really hurting from the cumulative financial impact of a succession of lockdowns”.
“This is much needed and will help renters in hard-hit sectors, such as hospitality, retail and entertainment, who have been stood down or lost hours due to the ongoing public health lockdown,” Ms Beveridge said.
“It’s both a good first step, and recognition of what renters financially affected by the lockdowns are experiencing.”
She said her organisation, alongside and other housing sector groups, would continue to work with the Victorian Government to seek further support for renters – most notably “the suspension of evictions during a lockdown period”.
A year-long moratorium on evictions and rental price hikes, sparked by last year’s extensive lockdowns, expired on March 28. More than 130 rental reforms applied in Victoria from the following day.
More than 11,000 notices to vacate were also lodged over the next four weeks, Victorian Civil and Administrative Tribunal figures showed.
More from news
Tenants Victoria director of community engagement Farah Farouque told realestate.com.au last week another moratorium was needed given “the level of rent stress building in the community”.
“People’s financial struggles have accelerated as a result of rolling public health lockdowns,” she said.
“Renters who’ve lost hours or been stood down from jobs have also now experienced three lockdowns without any direct tenancy protections.”
Tenants are also banned from physically inspecting new homes under Victoria’s lockdown, an outcome Real Estate Institute of Victoria chief executive Gil King said was “stopping many people from being able to access rental properties so they can put a roof over their heads”.
“The Victorian Government (must) remove this unnecessary and onerous restriction and allow the sector to get on with essential business,” he said.
Tenants Victoria’s recent Pandemic Pain report identified the Greater Dandenong, Yarra, Hume, Frankston, Moreland, Melbourne, Brimbank, Maribyrnong, Glen Eira, Port Phillip and Darebin regions as being “rental stress hot spots”.
Of 684 renters surveyed for the report, 69 per cent reported being financially impacted by lockdowns and about half said lockdowns had impacted their ability to pay rent.
The average loss per renter was reported at $108 per day.
MORE: ‘Grim’ September lockdown to wipe billions in spring home sales
Victorian lockdown extension: housing market shut until September 23
Melbourne lockdown: home inspections ban forcing sight-unseen sales