Anthony Albanese, state leaders called on to support renters in 'distressing' levels of need

The Australian Council of Social Service (ACOSS) and its state and territory counterparts warn that the rental crisis has contributed to developing "a whole new cohort of homelessness" and was impacting other areas such as mental health.

Their warnings add to the growing pressure on governments to bring in rent controls. It follows a standoff over Labor's $10 billion fund for affordable homes with the Greens, who want a national rent freeze and caps in exchange for their support.

Prime Minister Anthony Albanese has brushed off calls for a rent freeze but promised housing supply and renters rights will be on the national cabinet agenda.

On Monday, he told the ABC there wasn't a "single solution" to the housing crisis but said planning reforms were among the measures needed and would be discussed at the intergovernmental forum.

Peak bodies agree on the need for more housing supply but they say immediate action on rental affordability and security was also needed.

"Our front-line service organisations are witnessing distressing levels of housing need," states their letter to federal and state leaders.

"Members have told us ... the growing cost of living, limited rental properties and the increasing cost of rentals has developed a whole new cohort of homelessness with families and employed people not being able to find housing as well as the unemployed.

"Housing instability has increased mental health presentations, financial distress, [and the] inability to afford basic needs such as medications, food, [and] transport."

A University of NSW analysis found more than 640,000 households are low-income and struggling with homelessness, overcrowded housing or being forced to spend more than 30 per cent of their income on rent.

ACOSS chief executive Cassandra Goldie said the country's "hodgepodge network" of regulations was failing renters.

Tenancy laws are set by states and territories. Some jurisdictions have already adopted certain measures ACOSS and other bodies are calling for, such as limiting the frequency of rent increases to once per year.

But the ACT is the only jurisdiction to cap rent increases at 10 per cent above consumer price index. It has also recently banned "no grounds" evictions.

Devin Bowles, chief executive of ACTCOSS, said while there was also room for improvement within the capital territory, the ACT has adopted "very sensible reform that ought to be made in the rest of the country."

He said the measures were needed at a time when Australians were seeing rising costs across the board.

"Rents have increased quite dramatically in the last few years," he said.

"At the same time, Australians are experiencing other rapid increases in cost of living that are not necessarily matched by increases in wages or income support."

The peak bodies are also calling for governments boost the rates of JobSeeker, rent assistance and other payments and implement minimum energy efficiency standards for rental homes to reduce costs.

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Speaking to the ABC on Monday, Mr Albanese said his government recognised that many renters were doing it tough but said that increasing housing supply was key.

He said changes to planning laws were needed and would be discussed on Wednesday.

"My local council in Sydney has allowed for programs which are essentially for an increase in density, if it's for affordable housing. That's the sort of measures that we need. We need to mobilise super funds into housing as well," he said.

"There are a range of things that we need to do, and I'm up for doing all of the above. It's one of those things where you don't have a single solution because it's been built up over a long period of time."

National cabinet will meet in Brisbane on August 16.

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