The Victorian government say proposed real estate renting changes will reduce costs for renters.
The Victorian government say they’re aiming to make rental properties safer and more energy efficient – driving down power bills for renters and keeping their homes warm in winter and cool in summer, as the state grapples with record costs in Melbourne’s rental market.
Minister for Consumer Affairs Gabrielle Williams and Minister for Energy and Resources Lily D’Ambrosio today launched the consultation process for proposed new minimum rental standards which includes requirements for ceiling insulation, draughtproofing, hot water efficiency and cooling.
Under the proposed changes, rental providers would need to ensure their property meets a minimum requirement for ceiling insulation where there is no ceiling insulation already installed, has draught sealing, including weather seals on all external doors – these upgrades could save renters around $567 per year off their energy bills.
Victorian real estate renting changes
- Ceiling insulation to be required on all rental properties
- Draught sealing, including weather seals on all external doors to be required
- Requirements to replace hot water and heating systems with energy-efficient electric appliances
- Upgrades could save renters around $567 per year off their energy bills
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Rental providers would also be required to replace hot water and heating systems with energy-efficient electric appliances when their current appliance reaches end of life. The installation of these heating and cooling systems that meet the new standard is expected to save renters $215 off their energy bill per year. This comes in the wake of a stem of controversies regarding inadequate rental properties.
The standards will also introduce a 3-star cooling rating for systems in the main living area, 4-star shower heads in all showers, and blind cord anchors, making it easier for tenants to choose the right rental property.
Renters and landlords can currently access the Victorian Energy Upgrades (VEU) which is offering discounts to upgrade old gas appliances to more efficient electric appliances.
New standards will be phased in to allow rental providers adequate time to adjust and comply, with compliance commencing from 30 October 2025, although plans that increase the cost to rental providers may do little to reduce the price of rental properties themselves. The Victorian Greens have been vocal in calls for a rent freeze.
The introduction of enhanced minimum standards builds on existing rental minimum standards introduced in 2021, which covered 14 categories including heating, bathrooms and kitchens, ventilation, and electrical safety.
“The proposed standards will make rental properties safer and more comfortable – giving renters peace of mind for both the winter and summer and driving down costs,” Minister for Consumer Affairs Gabrielle Williams.
“Everyone deserves to live comfortably – these proposed standards will make rentals more energy efficient and cheaper to run – slashing their bills and making them more climate resilient,” Minister for Energy and Resources Lily D’Ambrosio added.
“These minimum standards will support renters to live in safe and future proofed homes, which will also help to slash their energy bills,” Member for Footscray Katie Hall concluded.
To have your say on the proposed new minimum standards, visit engage.vic.gov.au.
