The exodus of landlords in Victoria has continued with an expected drop of around 10,000 units in the state’s rental housing supply over the last financial year.
It comes as the state government passed a bill on Friday evening that will allow tenants to carry their bond over to their next lease – which is expected to save them from having to effectively cover the costs of two bonds at the same time.
It is believed the change will only last six to seven months for renters, after weekly rental costs of $570 in Melbourne increased by about $14 (2.5 percent) over the past financial year.
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The typical figure of €470 for regional Victoria is up about €23 (5 per cent).
The latest Homes Victoria Rental Report also shows that the number of rental bonds operating in Victoria, an analogy for the number of homes available to renters, fell by 1.5 per cent in the last financial year, just over 10,000 homes, to 655,626.
A decline suggests fewer landlords are making homes available, and while June’s figures are preliminary, they reflect the smallest decline in about 18 months, with a 2.5 per cent decline reported in Homes Victoria’s March report.
![Rental costs across Melbourne - Homes Victoria Rental Report, June 2025 quarter](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
The Homes Victoria Rental Report, June 2025 quarter, shows how much rental prices have changed in Melbourne.
Good news for Melbourne renters is that the city’s vacancy rate of 2.4 per cent is up slightly from a year ago when it was 2.3 per cent, although the regional figure fell from 2.4 per cent in June 2024 to just 1.8 per cent.
Vacancy rates are generally assumed to be below 3 percent.
With the report showing that the average Victorian renter moves every two years, paying a new deposit before the old one is released can be a major financial hurdle for tenants.
The average bond in Melbourne is just under $2500, while the norm in regional Victoria is above $2000.
The passage of the Consumer Law Amendment Act 2025 on Friday will allow the Portable Rental Bonds Scheme to launch in the first half of 2026.
Under the program, the government guarantees the deposit for the first house after it is transferred to the next. and if the landlord makes a successful claim on it, the government will pay it and demand full or phased payment from the tenant.
Homes Victoria Rental Report, June 2025 quarter, shows how rental prices for different types of homes are developing.
“Most renters don’t simply have a few thousand dollars to spare to cover the unnecessary costs of a double security deposit, and we’re proud to take the next step to solve 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 the best fuel price near them the next day.
Tenants Victoria CEO Jennifer Beveridge said most tenants also pay rent upfront to secure a lease, as well as the rent on the house they are vacating and moving costs, making it difficult for many tenants to scrape together money for a second bond.
“If the new portable bond scheme starts sometime early next year it will really help tenants,” Ms Beveridge said.
“It means tenants have access to their own money at a time when they really need it.”
Where the most and least affordable family homes are around Melbourne: Homes Victoria Rental Report, June Quarter, 2025.
The leasing attorney added that new evidentiary requirements for bond claims were another important factor.
“Many tenants have had questionable claims against their deposits in the past, and this will help protect them and their money,” Ms Beveridge said.
“In most cases, renters don’t cause damage to a property. They shouldn’t have to fight to get their security deposit back.”
She added there were more positives for renters as the Homes Victoria report shows a return to “normality” in some parts of the state capital, with rental prices in the Western Melbourne region remaining flat at $500 per week over the past year, although costs in Outer Eastern Melbourne rose 7.1 per cent to $600 per week.
Where renters can find affordable units in Melbourne. Source: Homes Victoria Rental Report, June 2025 quarter.
“Rent increases there became disconnected from reality for a while,” she says.
“Unfortunately, some tenants are still facing unfair rent increases. That’s why we’re calling for a fair formula for rent increases. Because even now that the frenzy over rent increases is over, we still don’t have proper protections against some people facing unfair increases in the future.”
The Victorian government’s total ban on rental bids, including unsolicited offers from tenants, comes into effect on November 25.
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