Rodney Stevens

With about one-third of the state’s population currently renting accommodation the NSW Government plans to deliver the biggest reforms to the rental market in many years, designed to improve rental laws, make renting fairer, and end no-grounds evictions.

The latest research by the state Government shows more NSW residents are living in rental accommodation than ever before, with around 33 per-cent of the population renting, a figure that has more than doubled in eight years, from 15.4 per-cent in 2016.

Consequently, currently the NSW rental market is the toughest seen in decades with historically low vacancy rates, median rental prices increasing by around 7 per-cent over the past 12 months, in a system that leaves people vulnerable to eviction at any time.

Currently, an owner of a rental property can choose to end a residential periodic lease at any time, for any reason, or no reason at all, creating insecurity and financial pressure for renters as their lives can be turned upside down at any time.

Delivering on an election commitment, under the Minns Government’s proposed reforms homeowners will need a reason to end a tenancy for both fixed term and periodic leases.

The reforms include reasonable reasons when a lease can be terminated such as:

1. When the renter is at fault because of a breach of lease, damage to the property, or non-payment of rent.
2. Where the property is being sold or offered for sale with vacant possession.
3. Where significant repairs or renovations make inhabiting the property too difficult or it will be demolished. If a homeowner seeks to renovate or repair a home, it cannot be relisted for a period of at least 4 weeks.
4. If the property will no longer be used as a rental home.
5. Where the owner or their family intend to move into the property.
6. If the renter is no longer eligible for an affordable housing program or if the property is purpose-built student accommodation and the renter is no longer a student.

Under the reforms, if passed, if a homeowner wants to end a lease they must provide evidence with a termination notice, with penalties applicable to homeowners who don’t provide genuine reasons.

Other reforms include the termination notice period for renters on fixed term agreements of less than 6 months will be increased from 30 days to 60 days, while for fixed term agreements of more than 6 months the termination notice period will be increased from 60 days to 90 days.

No changes are proposed to notice periods for renters on periodic agreements.

The reforms came about after a public consultation process that included more than 16,000 submissions and survey responses from the public and multiple sector-based roundtable meetings.

Stakeholder engagement has begun on the reforms and the government aims to introduce new legislation in the September sittings of parliament, with the reforms set to begin in early 2025, subject to consultation and government passing the reforms.