A Greens bill to implement a rent freeze in the ACT has been defeated, with Chief Minister Andrew Barr saying the "rash intervention" would stymie rental supply.
Mr Barr said a rent freeze would drive away investment and could potentially leave tenants in a vulnerable position.
"We don't believe in rash interventions in the market that would stymie the increase in rental supply, drive away investment that we're trying to attract and potentially leave tenants in a more vulnerable position both in the short and long term," Mr Barr said.
"We can't ignore that as populist as some ideas might be, they might have adverse consequences."
The private members' bill from Greens backbencher Jo Clay was debated in the Legislative Assembly on Tuesday afternoon. Both Labor and the Liberals voted against the bill.
Under the bill, a landlord would be barred from raising rents in the territory for two years and once that period is over rents could only rise by 2 per cent per year.
Ms Clay said said the debate had been disappointing.
"The private market is making it impossible for most Canberrans to own a home. And now we're not even engaging in serious debate about how to support and protect renters," she said.
"Renters are in crisis. In simply dismissing the bill, Labor and the Liberals have shown they are more interested in the bottom line of investor landlords than keeping a roof over renters' heads."
All Greens members spoke in favour of the bill with the party's deputy leader and Homelessness Minister Rebecca Vassarotti saying the private market had failed and politicians needed to step up.
"Frankly it has become clear to me that the private housing market has failed. That's why we need politicians to step up, show courage and propose meaningful change that will positively affect renters across the ACT," she said.
Mr Barr already ruled out implementing a rent freeze when the Greens released the bill for public consultation, saying rents were falling and there was a risk that rents would be frozen at a higher-than-market rate. He doubled down on this position on Tuesday.
"Recent trends have shown that rents have been falling in the ACT in both real and nominal terms," Mr Barr said.
The federal Greens have been pushing for rent freezes but Mr Barr said this national push failed to take into account circumstances in the ACT.
"I recognise there is a national campaign being run by the Greens party and I respect they will bring that campaign into this place," he said.
"I think that national campaign doesn't reflect the work that's been done locally."
Opposition housing spokesman Mark Parton said the bill had been "designed purely as an electoral tool for the Greens".
"We're not buying it and Labor is not buying it," he said.
The bill also included measures to ban all forms of rent bidding and remove a provision allowing higher rent increases to be prescribed through a residential tenancy agreement.
Mr Barr said the government would explore some of the bill's other measures separately.
But Ms Clay said it was disappointing neither party wanted to vote in favour of the measures.
"Neither party considered any of these measures on their merits and simply voted the whole package down," she said.
"It is clear that the old parties simply do not care about renters or at the very least, have their head in the sand about just how hard it is for renters right now."
