In the article Landlords who own one property ‘left without relief’ under new Victorian Government package posted on 15 April 2020 on the domain website. Barry Plant chief executive Mike McCarthy Makes the claim that landlords selling to owner-occupiers will push up the price of rent by reducing the available pool of rental properties as below.
“We are going to have landlords that are going to have to sell their property and while that’s great for first-home buyers what it does is reduce the pool of properties for tenants and over time that will push up rents,” Mr Webb said.
There is a similar claim which was made by PETER VERWER chief executive of the Australian property council in this 2013 discussion about a Grattan institute report (Check the transcript for full details.
They create 1.8 million homes available for rent. They’re not new homes, but they are 1.8million homes that would not exist unless a private investor is satisfied with the high compliance costs, the quite moderate rent and the maintenance costs to create all of this rented space
Does this claim add up, my understanding is that its a zero sum game. e.g. A landlord sells the property and a owner occupier moves in. Then there is one less property available for rent however one less person (or group of people) looking for somewhere to rent.
OR am I missing something?
Notes this is based on content in Australia.