Tenants would welcome super fund landlords – ASFA

The Association of Superannuation Funds of Australia (ASFA) believes renters would be pleased to have institutional investors and superannuation funds as their landlords.

In fact, ASFA Director of Research, Ross Clare has told the Senate Economics Committee that tenants would welcome the longer-term tenancy approach likely to be adopted by institutional players.

Appearing before the Senate Economics Legislation Committee inquiry into the Government’s Build to Rent legislation, Clare referenced the certainty provided by institutional landlords which compared to individual landlords.

“I think that they would be very happy with institutionally owned residential property where there is the option of longer-term tenancies rather than the more typical in the market situation where there is a lack of assurance of continuity of tenancy because it’s a small scale, sort of hobby activity for individual landlords,” he said.

Responding to questions from NSW Liberal Senator and super for housing advocate, Andrew Bragg, Clare said there was nothing wrong with individual landlords, but there was a role to play for institutional investors.

“There is nothing wrong with mums and dads providing rental stock and they are a very important part of the market but it is also important, where possible, to have an institutional role where longer-term tenancies can be provided.

Bragg argued that such an approach would represent a fundamental change to the Australian housing market “where you have major institutions owning houses”.

ASFA’s Head of Policy and Advocacy said the involvement of superannuation funds and institutions was about broader expansion of supply across the board.

“It’s in addition to some of the other categories of investors you’re outlining institutional investment is currently the case and measures like this seek to make it even more beneficial,” he said.

Bragg placed ASFA on notice to provide the number of superannuation funds owning residential housing and specifically asked whether building and construction industry fund, Cbus, was among that number.