Investment in public and affordable housing must continue and the federal government should take the lead on bolstering renters' rights, a parliamentary committee says.
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The interim report on Australia's worsening rental crisis, released on Thursday, made two recommendations for the government which include it take a "co-ordinating role" in rental reform and stumping up the cash for housing the vulnerable.
A right to longer leases, genuine end to no ground evictions and eviction grounds being clearly defined form part of stronger protections.
But chair of the inquiry, Greens senator Janet Rice, has proposed a two-year rental freeze as a third recommendation for the committee to endorse.
"Many witnesses told the committee how unrelenting and devastating rental increases can be to a person's finances and wellbeing," she said.
"The Commonwealth government must listen to the powerful evidence provided by renters at this inquiry and immediately work with states and territories to freeze and cap rental increases."
Coalition senators said that while they acknowledged the "complex and evolving pressures" on the Australian rental market, maintaining the rights of property owners was essential.
"It is important to note that most private landlords are 'mum and dad' style investors, investing in property to create wealth and safeguard their retirement," they said in additional comments in the report.
The government got its signature $10 billion Housing Australia Future Fund over the line after brokering a deal with the Greens.
The fund will build 30,000 new social and affordable homes in the first five years.
Labor senators on the inquiry said the government was committed to supporting Australians doing it tough, and will continue delivering reforms to make a meaningful impact on affordable housing.
"These are evidence-based reforms backed by some of the most significant investments in housing in a generation," they said.
State and territory governments agreed to rental reforms at a national cabinet meeting last month, including limiting rent increases to once a year and creating minimum rental standards.
The inquiry heard from a number of witnesses, including charities, which said rent freezes could have unintended consequences such as a rise in evictions, deterioration in maintenance standards and lower supply of properties.
The committee's final report will be handed down in November.
Australian Associated Press
