The Real Estate Institute of Victoria (REIV) is urging the state government to take immediate action to prevent further destabilisation of Victoria’s rental market. A surge in legislative reforms aimed at protecting renters has resulted in growing concerns among landlords, many of whom are now withdrawing their properties from the market.

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Key concerns raised by REIV:

• Investor exodus: Between March 2023 and March 2024, about 20,000 rental properties were removed from the market, as recorded by the Residential Tenancies Bonds Authority (RTBA)
• Overly landlord‑focused reforms: The recent Consumer & Planning Legislation Amendment (Housing Statement Reform) Bill, passed in March 2025, includes measures such as banning rental bidding, prohibiting no-fault evictions, extending notice periods to 90 days, imposing application fee bans, mandating minimum property standards at the point of advertisement, and ensuring annual smoke alarm checks‍
• Unintended consequences: REIV CEO Kelly Ryan has warned that the cumulative effect of these reforms—like longer notice periods, energy-efficiency upgrades, and tighter eviction rules—could deter small-scale "mum and dad" investors and reduce rental supply
• Investor costs: REIV’s submission "Striking a Balance" urges the government to protect landlords from tenant misconduct, tighten rules on non-payment, and align notice requirements to ensure fairness

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Why this matters now

Victoria is experiencing a rental supply shock: active rental bonds fell by over 24,000 between September 2023 and 2024, signalling a sharp reduction in available properties. Meanwhile, landlord exits are linked to rising land taxes, interest rates and the financial strains of compliance costs and regulatory changes,

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REIV’s recommendation

Rather than adding more regulations, the REIV calls for a two-sided approach: reinforcement of renter protections and introduction of incentives to retain small-scale investors. These could include tac relief, subsidies, or streamlined compliance processes to maintain rental stock and stabilise the market.

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Source: Real Estate Business, June 2025

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