Millions of renters in NSW will get much-needed relief from an increasingly claustrophobic rental market as sector reforms gradually come into effect over the next six months.
NSW Premier Chris Minns said the state’s 2.2 million renters will benefit as evictions will be banned, rent increases will be limited to once a year, pet owners will be given more rights and background check fees will be abolished.
“Renters have been the forgotten people in NSW for too long. Housing is the biggest expense people have, and renters are now getting a fairer deal,” Minns said.
He said the reforms would “bring the rental market into the 21st century” and had “achieved the right balance” for both tenants and owners.
It comes after Victoria introduced similar measures in October, including penalizing landlords for withholding bond payments without evidence.
NSW Rent Commissioner Trina Jones said the market was the toughest renters had seen for decades as historically low vacancy rates combined with average house rents rose by about 7 per cent over the past 12 months.
“These reforms will provide tenants with practical and meaningful support, which will help reduce the uncertainty and vulnerability of renting in challenging urban and regional rental markets,” she said.
NSW Housing Minister Rose Jackson echoed Ms Jones’ sentiments, describing the raft of new reforms as a “huge win” for tenants.
NSW Premier Chris Minns (pictured on Tuesday) has passed changes to NSW’s rental laws, which are currently being rolled out over the next six months
Tenants were queuing at a Bondi rental property in early 2024. The rental crisis has since worsened, industry figures show
No land evictions
Among the changes to tenancy laws in NSW is the ban on groundless evictions, which will improve housing security for tenants and give landlords greater clarity about when they can terminate a fixed-term or periodic tenancy for clear, obvious reasons.
According to the Tenants Union of NSW, no land evictions in NSW refer to the practice of landlords evicting tenants without having to provide a reason.
Some valid reasons include breaches of lease agreements, a proposed sale of the property, significant renovation or demolition work, the landlord or his family moving in, and situations where the property is no longer used as a rental.
According to the union, there is a loophole in the law that can be exploited by landlords.
‘Landlords can claim that they intend to sell, only to abandon the sale later without significant consequences. Allowing evictions for repairs risks landlords neglecting their maintenance obligations and later using renovations as an excuse to evict tenants.”
Leo Patterson Ross, CEO of the Tenants Union of NSW, said: ‘Millions of tenants have felt the impact of groundless evictions in their lives – whether it was hesitation to ask for repairs or negotiate a rent increase, or having to find a new home without justification.
“This is the single most important change we can make to residential tenancy law, because without protection against unfair eviction we cannot trust other parts of the law to function properly.”
NSW Housing Minister Rose Jackson (pictured) said the changes were a “huge win” for renters
Tenants will no longer be charged for background checks in NSW and can no longer be evicted without cause (pictured, renters inspect a flat in Bondi in Sydney’s east)
Perks for pet owners
All tenants can now request to keep pets in their rental accommodation. Landlords cannot refuse except for a list of reasons specified under the new law.
Previously, landlords had the choice not to allow pets in their home, unless it was a service animal, and did not have to provide a reason.
“It goes without saying that there are thousands, if not almost a million, of people who are renters who own a pet in NSW. We have to make it as easy as possible. “Gone are the days when a pet was automatically rejected for no reason,” Minns said.
According to the Residential Tenancy Amendment Bill 2024: ‘A landlord must not unreasonably refuse permission to a tenant to keep an animal on the residential premises.
‘It is also assumed that a landlord has given permission for the animal to be kept in the living space, unless the landlord submits a request to the court within fourteen days of receiving the request to refuse permission to keep an animal in the living space. to have living space. ‘
Under the law, a landlord can only refuse permission to keep a pet if this would result in an unreasonable number of animals on the premises, the fencing is inappropriate, there is insufficient open space or the animal cannot be kept on the premises become. building human.
Additional reasons include if the animal is likely to cause damage that would cost more to repair than the security deposit, the landlord lives on the property, keeping the pet would violate any law or statute, or if the tenant refuses to consent with a reasonable compensation. condition to keep the pet.
Among the changes to rental laws in NSW is the ban on groundless evictions, improving housing security for tenants (Photo: A house for rent in Canberra)
Landlords in New South Wales can no longer refuse tenants with pets unless they have a reason set out in law (stock image)
Limitation of rent increases and reimbursements
The rent can now only be increased once a year.
However, the amount of the increase was not capped under the new legislation.
In addition, a range of accessible payment options should be offered, including Bpay, Centrepay and bank transfer.
Background check fees are also banned under the new legislation, removing the barrier for renters who face difficulties applying for multiple properties in the competitive market.
Housing Minister Clare O’Neill said she supported states banning groundless evictions and rent bids and limiting increases, she said.
The Greens have called for rent caps, but Ms O’Neil said this is also a state responsibility and could reduce supply, worsening affordability.
Instead, the government is trying to build more housing and allow fewer international students into the country.
A recent survey by Flatmates.com.au found that around a third of tenants experienced rent increases in the past six months – with half of these being larger than tenants expected.
More than half of the 8,700 respondents now believe that the dream of owning their own home is out of reach for young people.
Huge lines of Sydneysiders are queuing to inspect an apartment in the city’s east
And nearly 60 percent of renters surveyed said they were struggling to meet their payments, up from 14 percent in 2023.
“The continued cost of living pressures over the past twelve months have changed the way Australians approach housing. “43 percent of respondents say affordability constraints have driven them to share housing,” says product manager Claudia Conley.
The research found that the proportion of members aged over 55 participating in a share housing scheme had increased by seven per cent year-on-year, with the over-75s the fastest growing demographic group.
“Half of respondents over 55 did so out of financial necessity, but there was also a 30 percent increase in the number of respondents who chose a shared life because of the companionship it provides,” Conley said.
Meanwhile, the Real Estate Institute of Australia’s September Quarter 2024 report found that housing affordability has hit an all-time low.
The share of income needed to meet average rents increased by 0.3 percentage points last quarter, meaning tenants now spend on average around a quarter of their wages on rent.
Rent affordability fell in every state and territory except Victoria and Queensland. It fell by 3.0 percentage points across Australia in the past five years and by 3.6 percentage points in the past twenty years.
NSW remains the most unforgiving state or territory to live in as a tenant or mortgage holder.
Families with an average loan repayment now spend 58.1 percent of their income on each payment, while renters spend 28.7 percent of their wages.
Australians are generally considered to be in rental stress if they pay more than 30 percent of their income on rent.