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New figures show there have been double-digit increases in capital city rent prices over the past year. Figures compiled by Australian Property Monitors (APM) show renters in Perth, Sydney, Melbourne and Brisbane are the worst affected. Average rent for units in Perth has jumped 25 per cent over the past year while rent for houses has increased by 17 per cent. In Melbourne rent on houses is up 17 per cent and units 13 per cent. The cost of renting a house in Brisbane has increased by 13 per cent over the past year and Sydney houses cost 15 per cent more to rent and units 11 per cent. APM's Michael McNamara says owners are raising rent prices to offset their increasing payments on mortgages. "We're likely to see this combination of increased demand and tight supply even much further than what they are today," he said. "On one hand we've got landlords that are desperately trying to offset the increased costs of servicing a mortgage with rental increases to their tenants. "And on the other hand, with rising mortgage costs, renters are deterred from making the move into home ownership." Mr McNamara says Hobart and Adelaide remain the most affordable capital cities to rent in. Meanwhile, welfare groups say entering the private rental market has become a desperate situation for many people. Robert Leach from the St Vincent de Paul Society says there is no sign the cost of living is easing. "There's a shortage of rental properties, rents are going up, there's increased demand, which will increase further where people default on their mortgages and their houses will be repossessed - that's going to increase pressure," he said. Inflation pain Adding to further woes for consumers, figures released yesterday showed that the cost of living had surged dramatically to its highest level in 17 years, excluding the period when the GST was introduced. The consumer price index (CPI) showed that the annual level of inflation has risen to 4.5 per cent, exceeding economists earlier forecasts of a rise to 4.3 per cent. Rent crisis causes price jump in capital cities While consumers grappled with increased rental prices and mortgage stress, the Australian Bureau of Statistics (ABS) attributed the inflation rise to higher costs in financial services, fuel and clothing and footwear. Food was down by 0.1 per cent. The ABS says Perth, Brisbane and Darwin are the inflation capitals of Australia. |
