On 7 November 2022, the Minister for National Development, Mr Desmond Lee, fielded questions from MPs relating to the “explosion in rent” and predatory behaviour by landlords.
Mr Lee’s response, which assured Singaporeans that the Government was monitoring the residential rental market closely, contained little substantive details on measures that the Government may take to curb exploitation by landlords.
Concerns about Exploitative Landlords
2 MPs, Saktiandi Supaat and Sharael Taha, filed questions arising from their concerns relating to the residential rental market for the sitting of Parliament on 7 November 2022.
2 MPs have raised concerns about "predatory behaviour by landlords". Some examples of this exploitation by landlords include "demanding exorbitant increases in rent or rescinding offers after tenants have paid security deposits." pic.twitter.com/GhHNExIYDb
— Wake Up Singapore (@wakeupsg) November 6, 2022
Saktiandi Supaat, the member of Parliament for Toa Payoh East, asked the Government if the “explosion in rent” impacted Singapore’s ability to attract the best foreign talent. He also sought answers on measure, if any, that the Government takes to curb predatory behaviour by landlords.
Sharael Taha, the member of Parliament for Pasir Ris East, asked the Government if it was considering introducing cooling measures to cool the rental market. He also expressed concern over exploitative behaviour by landlords.
Both MPs gave examples of exploitative practices by landlords like demanding ‘exorbitant increases in rent’ and ‘rescinding offers after tenants have paid security deposits’.
Government Monitoring Residential Rental Market Closely
The Government assured Singaporeans that it was monitoring the residential rental market closely as rising rental prices affect both Singaporeans and global talent. In respect of the latter group, the Government noted that other factors like Singapore’s standing as a global business hub and her strong external trade links also play a part in relocation decisions.
In support of the proposition that Singapore remains an attractive destination, the Minister cited INSEAD’s Global Talent Competitiveness Index 2022 where Singapore ranked first in Asia, and second in the world, for attracting and developing talent.
Mr Lee also said that the increase in rental demand may be attributed to the need for temporary housing due to COVID-19 related construction delays and ‘broad-based demand’ arising from the robust recovery from COVID-19.
CEA’s Tenancy Agreement Templates
In relation to the questions on exploitative and predatory behaviour by landlords, and measures to cool the rental market, the Government’s response left much to be desired.
The Government noted that the Council for Estate Agents (CEA) publishes public resources like Tenancy Agreement Templates and checklists for parties during the rental transaction process to facilitate fair tenancy contracts.
However, these templates merely serve as a guide and errant landlords may be at liberty to depart from such boilerplate clauses. The templates do not provide much protection against errant landlords who demand exorbitant increase in rent.
The Government added that parties can seek recourse through civil action if tenancy agreement are breached. However, this does not address the concerns about situations where the tenancy agreement itself is patently unfair or lobsided.
It is time to bring back the Rent Control Act?
With rental prices skyrocketing and absurd rents making headlines in recent times, some have begun looking to Singapore’s past for solutions.
In particular, many have mooted the possibility of bringing back Rent Control or some form of measure to prevent greedy landlords from demanding unjustified hikes in rent. This idea is not novel as Singapore abolished the Control of Rent Act, which protected tenants from unscrupulous landlords, in 2001.
At a time where inflation is high and the cost of living is sky-rocketing, landlords should not be allowed to seek exorbitant and utterly unjustified price hikes to be demanded.
In a future piece, we will revisit the history of the Rent Control Act in Singapore and why the time is ripe for it to return.
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Top photo from PAP
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