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Hopes rent bidding ban will ease price squeeze

Billons for housing will ease the housing crisis in the future, but doesn't help those struggling now.

Billons for housing will ease the housing crisis in the future, but doesn't help those struggling now. Photo: AAP

Rent bidding has been outlawed in South Australia with the government hoping the change will help ease soaring rental prices.

State parliament passed the new laws on Tuesday preventing landlords from advertising properties with a rent range, putting properties up for rent auction, or soliciting offers over the advertised rental price.

The change brings SA into line with a number of other states and comes at a time when the median rent in Adelaide has hit a record high of $450 a week and vacancy rates have plunged to 0.6 per cent.

Consumer and Business Affairs Minister Andrea Michaels said the state government understood how difficult the current rental market was for many tenants.

“Rent bidding unfairly drives up prices and is contributing to the current rental crisis by making it more and more difficult for South Australians to find affordable rental accommodation,” she said.

In other moves, the government recently raised the bond threshold from $250 to $800, meaning the majority of tenants only have to pay a four-week bond instead of six.

It also plans to amend the Residential Tenancies Act to prevent landlords from unreasonably refusing to allow pets and will increase the minimum notice to end a tenancy from 28 days to 60 days.

– AAP

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