A newly passed bill
Victoria’s landlord exodus has continued with an about 10,000 home fall projected for the state’s supply of rental residences across the past financial year.
It comes as the state government on Friday night passed a bill to allow renters to transfer their bond to their next lease — expected to save them from having to effectively cover the cost of two bonds at a time.
The change is understood to be as little as six or seven months away in a silver lining for renters after Melbourne’s $570 weekly rental cost rose about $14 (2.5 per cent) in the past financial year.
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The $470 typical figure for regional Victoria is up about $23 (5 per cent).
The latest Homes Victoria Rental Report also found the number of rental bonds active in Victoria, an analog for the number of homes available to tenants, fell 1.5 per cent, a bit more than 10,000 residences, to 655,626 across the past financial year.
A reduction indicates fewer landlords making homes available, and while the June figures are preliminary they reflect the smallest decline in about 18 months, with a 2.5 per cent reduction noted in Homes Victoria’s March report.
The Homes Victoria Rental Report, June quarter, 2025, shows how much rents have moved around Melbourne.
In good news for Melbourne tenants the city’s 2.4 per cent vacancy rate is up slightly on a year ago, when it was 2.3 per cent, though the regional figure sank to just 1.8 per cent from 2.4 per cent in June, 2024.
Vacancy rates are generally considered concerning below 3 per cent.
With the report showing the average Victorian tenant moves home every two years, paying a new bond before the old one is released can present a major financial hurdle to renters.
The median bond in Melbourne is just under $2500, while in regional Victoria the standard is above $2000.
Friday’s passage of the Consumer Legislation Amendment Bill 2025 will allow for the Portable Rental Bonds Scheme to kick off in the first half of 2026.
Under the program, the government will guarantee the bond for the first home after it is transferred to the next one. and if the landlord makes a successful claim for it the government will pay it and require payment by the tenant either in full or in stages.
Homes Victoria Rental Report, June Quarter, 2025, shows how rents for different types of homes are moving.
“Most renters don’t just have a spare few thousand dollars lying around to cover the unnecessary cost of a double bond and we are proud to take the next step to help get rid of this problem,” said consumer affairs minister Nick Staikos.
Another aspect of the legislation will force petrol stations to set prices for 24 hour periods, under the Fair Fuel Plan — allowing Victorians to check for the best fuel price near them for the next day.
Tenants Victoria chief executive Jennifer Beveridge said with most tenants also paying rent in advance to secure a lease, as well as rent on the home they’re vacating and moving costs, scraping together money for a second bond was tricky for many renters.
“When the new portable bond scheme starts some time early next year, it will really help renters,” Ms Beveridge said.
“It means renters have access to their own money at a time when they really need it.”
Where the most and least affordable family home rentals are around Melbourne: Homes Victoria Rental Report, June Quarter, 2025.
The rental advocate added that new evidence requirements for claims on bonds was another important factor.
“A lot of renters have had dubious claims made against their bond in the past, and this will help protect them and their money,” Ms Beveridge said.
“In most instances, renters don’t cause damage to a property. They shouldn’t have to fight to get their bond back.”
She added that there were more positives for renters with the Homes Victoria report showing a return to “normalcy” in some parts of the state’s capital, with the Western Melbourne region’s rents flat at $500 a week in the past year, though the cost soared 7.1 per cent to $600 a week in Outer Eastern Melbourne.
Where Melbourne tenants can find affordable units. Source: Homes Victoria Rental Report, June Quarter, 2025.
“Rent increases became untethered from reality for a while there,” she said.
“Unfortunately, some renters do still face unreasonable rent hikes. That’s why we’re calling for a rent increase fairness formula – because even now that the rent increase frenzy has passed, we still don’t have good protections in place against some people copping unfair increases in the future.”
The Victorian government’s total ban on rental bidding, including for unsolicited offers from tenants, will come into force on November 25.
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