Renters across Australia have been on the receiving end of soaring interest rates, with the cash rate on Tuesday hiked for the eighth consecutive month.
Sydneysiders continue to be hit the hardest by the Reserve Bank of Australia’s rate rises, the latest by another 25 basis points, bringing the cash rate to 3.1 per cent.
Rents in parts of the city have increased by up to $177 a week over the last three months alone.
Similarly, those in Western Sydney are paying $118 extra a week in rent compared to a year ago.
Rentals on the Lower North Shore have been most heavily hit, with prices climbing $275 or 36 per cent over the past 12 months.
Residential vacancy rates slipped to 1.3 per cent in Sydney overall, with southwestern Sydney and the Sutherland Shire sitting at a tight 0.8 per cent.
In Brisbane, rents have risen by up to $67 a week over the last three months alone.
Those in the CBD are paying $149 or 29.8 per cent more than they were a year ago in an area with just a 1 per cent vacancy rate. This figure is 0.8 per cent across the city.
The rental vacancy rate nationally has plunged. Picture: NCA NewsWire / Andrew Henshaw
Perth renters have been similarly impacted, with residential vacancy rates among the tightest in the country at 0.4 per cent overall.
Rents have risen by up to $46 a week over the last three months alone and tenants in southwest Perth are paying $88 extra a week in rent compared to a year ago.
Everybody’s Home national spokesperson Maiy Azize says renters will face more strife due to rising interest rate hikes, even if they don’t own a home.
“Rents have been on the rise well before interest rates climbed, but every rate increase adds more pressure to an overheated and unaffordable housing market,” Ms Azize says.
“Another interest rate hike means renters will be worse off if their landlord passes on an increase. This will deepen housing stress for thousands of people.”
The RBA announced on Tuesday that it was hiking the cash rate to 3.1 per cent – the highest level since 2012.
The big banks have announced they will pass on the RBA’s rate rise to its variable rate customers.
NAB was the first of the big four banks to pass on the rate hike, with its variable mortgage holders to cop the full 0.25 per cent rise.
From December 16, NAB will see its discounted variable rate reach 6.67 per cent, representing a $78 increase in monthly repayments for a $500,000 loan.
The cash rate has risen for the eight consecutive time. Picture: NCA NewsWire / Andrew Henshaw
Westpac and ANZ have also passed on the rate rise for variable owner-occupier customers.
ANZ will see its discounted variable rate hit 5.99 per cent and its index rate jump to 7.39 per cent from December 16.
Westpac will now see its standard variable rate hit 6.18 per cent and its standard rate reach 7.48 per cent from December 20.
The Commonwealth Bank (CBA) has also announced it will be passing on the rate hike, effective December 16.
Its basic rate will now sit at 4.87 per cent and its discounted variable rate will now be between 4.82 and 6.49 per cent.
CBA’s standard variable rate will now be 7.55 per cent.
Athena Home Loans will also be increasing its rates “in line” with the RBA’s announcement, the bank said on Tuesday.
The hike will add about $80 to the monthly payment on a $500,000 mortgage.
That would take the total increase in monthly payments since April to $910 per month or $11,000 for the year.