Renters to bear the brunt of tenth consecutive interest rate hike

March 13, 2023 8:32 am in by

Renters are set to cop the fallout from another interest rate hike in Australia after the Reserve Bank raised the rate another 0.25 per cent.

A tenth consecutive interest rate hike has prompted urgent calls for more social housing to protect renters from rising costs.

Many banks have already passed on the latest interest rate hike to homeowners but some experts say renters will suffer the biggest blow to the hip-pocket.

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The vacancy rate in Mackay is currently sitting at around 1 percent.

Everybody’s Home spokesperson Maiy Azize has called on the Government to step up and fund more social housing.

“Rising interest rates are hurting everyone,” she says.

“Rents are soaring, and people are spending more and more on housing.

“Renters are at the bottom of the ladder.

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“Not only are they dealing with record high rents, but they are missing out on badly needed help as billions of dollars are spent on tax handouts for landlords.

“Many are forced to accept rent increases and have nowhere to turn.

“With low vacancy rates across the country, finding another rental is not an option and with a shortfall of 500,000 social homes, struggling renters are simply trapped.

“It’s time for the Government to step up and take action.

“The billions of dollars we spend propping up landlords would be better spent helping struggling renters, and building more social homes.

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“The private market hasn’t been delivering low rents or social homes for people in need – even back when interest rates were at record lows.

“The only way to make it happen now that rates are going up is for the Government to build the homes that Australians need.

“We’re calling on the Federal Government to start building 25,000 social homes each year.

“With thousands of Australians in rental stress and with the shortfall growing every year, there is no time to waste.”