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AAP
AAP
Politics
Tim Dornin

Welfare groups call for rent capping in SA

Welfare groups in South Australia are calling for a rental price cap amid an availability crisis. (Bianca De Marchi/AAP PHOTOS) (AAP)

Welfare groups are calling for rent capping in South Australia amid growing concerns over the affordability of available housing.

The South Australian Council of Social Service, Better Renting, the Anti-Poverty Network and Uniting Communities all made submissions to a recent state government review of the Residential Tenancies Act.

But they said they remained concerned any changes would fail to address rental affordability.

Anti-Poverty Network campaigns coordinator Pas Forgione said South Australia was in the midst of a rental affordability crisis.

"We are seeing people skipping meals and medicines, because of huge rents and enormous rent rises," he said.

"This cannot be allowed to continue. Governments have to intervene to protect people just trying to keep a roof over their head."

The four groups said government data showed that some rents had gone up by almost double the inflation rate over the past year.

Median rents for newly tenanted two-bedroom units in Adelaide in the September quarter this year were 12.1 per cent higher than at the same time last year,

While rents for three-bedroom houses were 15.8 per cent higher.

The groups said there was a range of ways to make rent reforms work with a cap on increases the most urgent need.

SACOSS Chief Executive Ross Womersley said the current system was "simply unfair".

"We know that when rents increase faster than inflation, landlords receive an increase in their real income, while tenants see their real standards of living decrease," he said.

Uniting Communities Chief Executive Simon Schrapel said with the housing market in crisis, now was the time for decisive action.

"A rent cap to protect the most vulnerable would have an immediate and profound impact in reducing the stress for low-income private renters," he said.

"This is action that can, and must, be taken now if our state government has a real commitment to reducing financial hardship and homelessness."

In November, the SA government released a discussion paper ahead of likely reforms to residential tenancy rules.

That proposed making it easier for people with pets to find rental accommodation and a ban on rent bidding, where properties go to those able to offer more than the advertised price.

The government paper said it would also consider introducing standardised application forms, setting maximum bond amounts and extending the notice required for not renewing a tenancy agreement.

At the time, Consumer and Business Affairs Minister Andrea Michaels said the government wanted to ensure the state's residential tenancies laws were modern, covered relevant issues and worked in the best interests of both tenants and landlords.

"As Australia continues to face a widespread rental crisis with lack of stock and affordability issues, it's been one of my priorities to ensure we have contemporary, effective residential tenancies laws in this state," she said.

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