The NSW government will eliminate a secret rent bidding ”loophole” and give renters greater protection amid a statewide crisis in a Bill set to be introduced on Wednesday.
The legislation will require agents and landlords to notify all applicants if they receive a bid higher than the advertised price on rental properties and cement a ban on solicited rent bidding to also include owners and third parties.
NSW Better Regulation and Fair Trading Minister Anoulack Chanthivong said this would close a loophole that previously only barred real estate agents from the act.
“Agents are already banned from asking prospective tenants for more rent than what the property is advertised, but landlords and third parties aren’t, so we’re closing that loophole,” he said.
The first steps will also be drafted to create a portable bond scheme that transfers the bond from one property to another, reducing a significant out-of-pocket cost for applicants.
Premier Chris Minns said it was a “sensible cost of living measure to help ease the pressure on the more than 30 per cent of people in NSW currently renting”.
“Anyone who rents in Sydney knows just how anxious and challenging a process it can be to find suitable accommodation, never mind the significant costs associated with moving,” he said.
“These changes will create a fairer rental regime in this state by providing greater certainty as well as flexibility for both renters and owners.”
The legislation targets some of the election promises made by NSW Labor to renters prior to winning government. Extra reform to end no grounds evictions, loosen rules around pet ownership in leased homes and data protection for renters is also under way.
The government is also in the process of hiring a rental commissioner to advocate for tenants.
However, the government has ruled out rent freezes despite Sydney rents increasing by 25.3 per cent in the past 12 months, and 7.1 per cent in the last quarter alone.
SQM research found two-bedroom units had the most inflated prices, with rents increasing by 30 per cent in the last 12 months to May 4. Houses reported an increase of 21.1 per cent.
Vacancy rates have also fallen to a nine-year low.
Peak body for agents, the Real Estate Institute of NSW, reports vacancy rates in Sydney dropped to 1.3 per cent in March and were only marginally better in the Hunter (1.6 per cent) and Illawarra (1.8 per cent) regions.
Mr Chanthivong said the proposed measures would ease pressure and increase rental stock.
“The message at the last election was clear: Renters in NSW didn’t feel their voice was being heard,” he said.
“Our focus is on getting the balance right by implementing responsible reforms that reduce stress and pressure for renters while also looking at ways to drive new supply into the market.”
Housing and Homelessness Minister Rose Jackson said the updated and modernised laws were needed as more people became lifelong renters.
“There is a relationship between our unfair rental laws and increases in housing insecurity,” she said.
“We know our current rental laws aren’t working, this is a step closer to improving renters’ rights for the people of NSW.”