QLD Government Passes Manufactured Homes (Residential Parks) Amendment Bill 2024
In May 2024 the Queensland Government passed the Manufactured Homes (Residential Parks) Amendment Bill 2024. Key details of the legislation change include:
Prohibition of Market Site Rental Reviews.
Limit on annual site rental increases to either CPI or 3.5% (whichever is higher).
Introduction of a buyback and rental reduction scheme where homeowners can ‘opt in’ for homes which are on the market for more than 12 months - including provisions on agreement of re-sale value and timing.
More transparency between RLLC operators and current/future residents via strengthening of registration requirements and maintenance/capital replacement plans.
It is our opinion that any imposed limits on annual rental increases will have a nominal impact on long term values within the sector. Furthermore, the proposed changes do not impose restrictions on market rental reversions upon home re-sales – in instances where contracted rental increases fall behind market rates. Notwithstanding, prohibiting market rental reviews (point 1) interferes with an open market economy which has the potential to impact residents and operators alike.
Overall, the RLLC sector remains underpinned by favourable long-term dynamics including increasing institutional capital investment, an ageing population and relatively low market penetration, with the main short-term hurdle comprising availability of suitable land for development.