The Minns Labor government is set to introduce significant reforms to rental laws in Australia’s most populous state New South Wales to cap the number of rental increases to once per year.
This new regulation, presented in Parliament on Oct. 15, aims to provide stability and fairness for the state’s 2.2 million renters.
The reform will apply to periodic and fixed-term leases, and address existing loopholes in rental legislation, making renting in NSW more predictable.
The government’s reforms will also end “no-grounds” evictions, and clarity of how leases can be terminated.
Additionally, the reforms will make it easier for tenants to keep pets in rental properties, ensuring landlords can only refuse requests on specific grounds.
Renters will also have access to free payment methods, including bank transfers and the Commonwealth government’s Centrepay, and they will not be required to cover the costs of background checks when applying for a rental.
Minister for Fair Trading Anoulack Chanthivong said these reforms stem from extensive consultations with renters, industry stakeholders, and tenancy experts.
Chanthivong stressed the importance of balancing the interests of renters and landlords. The government has also established a Rental Taskforce within NSW Fair Trading to address housing concerns further.
The proposed cap on rent increases aims to align NSW laws with the National Cabinet’s “Better Deal for Renters” and create a fairer and simpler renting process.
Current protections against multiple rent hikes do not apply to fixed-term leases of less than two years or when a lease changes from periodic to fixed term. The government hopes to provide renters with greater security by limiting increases to one per year.
15,000 Unable to Secure a Home Each Month: REINSW
According to figures from the Rental Bonds Board, approximately 15,000 people are unable to secure a rental property each month in NSW. This crisis is underscored by the Real Estate Institute of NSW (REINSW), which describes the housing system as “broken.”REINSW CEO Tim McKibbin highlights the situation’s urgency, noting that the gap between the number of available rentals and the influx of new residents is widening.
In 2023, NSW welcomed 186,433 new residents, translating to a net increase of 15,536 people per month, all in search of accommodation.
As of March 31, 2024, there were 970,428 rental properties in the state, an increase of just 4,256 since September 2023.
The minimal growth in rental properties, combined with rising migration, has exacerbated the housing crisis, leaving many struggling.
“Each month, the number of people seeking but unable to find a home to rent compounds,” McKibbin says, warning of the severe implications for individuals and families across the state.
Meanwhile, the state’s Greens Party has pushed for an immediate two-year rent freeze across the country coordinated through the National Cabinet, followed by a cap on future rental increases at 2 percent every two years.
Additionally, they propose the establishment of a new public property developer to increase the supply of public and genuinely affordable housing, and to create a National Renters Protection Authority enforce their proposals.
