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NSW Premier Chris Minns is set to introduce rental reforms that aim to stamp out the practice of rental bidding in an effort to improve prospects for the state’s renters.
Mr Minns will introduce a bill to the NSW parliament today (Wednesday, 10 May), which plans to eliminate the practice of secret rent bidding and puts plans in motion to develop a portable bond scheme.
The bill proposes to:
- Close the loopholes in the existing ban on solicited rent bidding to include owners and third parties.
- Eliminate secret rent bidding by requiring owners and their agents to notify applicants of other offers from prospective tenants which are higher than the advertised price.
- Establish the appropriate powers to design and enact a portable bond scheme.
In the March 2023 NSW election, Mr Minns ran on a platform that included better protections for NSW renters. He cited those promises in introducing the legislative amendments, stating he was “getting on with the job of delivering on our election commitments and providing much-needed relief for New South Wales renters”.
The Labor government has promised these are only the “first step” in implementing rental reforms to reduce the stress on tenants in the state.
The government has also commenced the process of appointing a rental commissioner to be a voice for renters, and work is underway on reforms to end “no grounds” evictions, relax the rules on tenanted pets, and better protect renters’ personal information.
Mr Minns described the rental bidding reforms as “a sensible cost-of-living measure to help ease the pressure on the over 30 per cent of people in New South Wales currently renting”.
And he spoke to the current challenges particularly facing renters in the state capital, where vacancy figures recently hit a 13-year low.
“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. These changes will create a fairer rental regime in this state by providing greater certainty as well as flexibility for both renters and owners,” Mr Minns said.
Anoulack Chanthivong, the state’s Minister for Better Regulation and Fair Trading, said the message at the last election was clear — the government must act to help renters.
“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,” Mr Chanthivong said.
“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.”
Mr Chanthivong also explained how a portable bond system could ease pressures on those changing rental accommodations.
“In the existing system, a renter paying $550 per week faces a bond cost of $2,200 if they want to move, the equivalent of 11 weeks’ worth of groceries.
“A portable scheme will free up cash and make life easier for renters”.
Minister for Housing and Homelessness, Rose Jackson, described these amendments as necessary in the changing face of housing across the state.
“More and more people are renting — and renting for life. As our housing market changes, we need to update and modernise our laws to ensure we are getting the balance right,” Ms Jackson said.
“We know our current rental laws aren’t working, this is a step closer to improving renters’ rights for the people of NSW.”
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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