Almost one in three Australians rent their homes and the number is likely to rise as vacancies dwindle and prices soar.
The federal government has proposed increasing the number of affordable rental properties, but its bill to achieve this faces an uncertain future with opinions split down party lines.
Such division could jeopardise the much-needed creation of 105,000 new homes, Property Council of Australia chief executive Mike Zorbas says.
The federal government wants to build thousands of new homes to help ease the housing crisis. (Bianca De Marchi/AAP PHOTOS)
"It is disappointing (the politicians) couldn't find common ground in the middle of a national housing supply crisis," he said.
"Providing more housing choice, especially rental choice, is critical to solving the housing crisis.
"Now is the time for good faith, good policy negotiations to replace entrenched political positions."
The Community Housing Industry Association and National Shelter chief executive Emma Greenhalgh have backed the Property Council's position.
Ms Greenhalgh has called on politicians to consider amendments that would improve the renting experience - such as longer leases.
Under Labor's build-to-rent scheme, investors would receive tax incentives to build new homes that would only be available to renters.
While a Senate report into the proposal released on Wednesday recommended passing laws setting up the scheme, the coalition said it only entrenched a "rent forever agenda".
"This bill seeks to entrench tax advantage for institutional investors, in a thinly veiled attempt to corporatise the Australian housing market," coalition senators Andrew Bragg and Dean Smith said in the report.
The government would need the support of either the coalition or the Greens to get the build-to-rent scheme to pass parliament.
The Greens also raised concerns with the plan, saying it would not lead to any affordable rental properties being built.
Senator Nick McKim said the party would only support the proposal if the government agreed to phase out negative gearing and implement a national rent freeze.
The government's housing affordability council head has called for an entire overhaul of the rental system.
More protections are needed for renters, National Housing Supply and Affordability Council chair Susan Lloyd-Hurwitz told the National Press Club on Wednesday.
Susan Lloyd-Hurwitz says the security of tenure for renters can be fragile. (Mick Tsikas/AAP PHOTOS)
"Those who are renting are doing so for longer. Renting is the only viable housing option for an increasing share of the population, but in so many ways, our system doesn't work for renters," she said.
"Housing quality and maintenance are variable, ranging from excellent to utterly inadequate.
"Security of tenure can be fragile. We need regulatory frameworks that better support renters."
Ms Lloyd-Hurwitz said increased protections such as renters able to live at a property for as long as they like, limits of one increase in rent per year, free repairs or not needing permission to paint walls were among suggestions to make renting easier.
However, she said a freeze in rents for tenants would not be helpful in the long run.
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