The Minns Labor Government is delivering on its election commitment to improve rental laws and help make renting fairer, announcing new laws to end no-grounds evictions.
This change will be the one of the biggest reforms to the rental market in a decade and will help to ensure we get the balance right between renters and homeowners.
We have a housing crisis in NSW. In fact, housing is the largest single cost of living issue facing the people of NSW.
More people are renting than ever before, with around 33 per cent of the NSW population renting, an increase of 17.6 per cent since 2016.
However, the current rental market in NSW is the toughest that renters have seen for decades with historically low vacancy rates, median rent prices increasing by around 7 per cent over the last 12 months, and a system that leaves them vulnerable to eviction at any time.
These changes bring NSW into line with other states including the ACT, South Australia and Victoria who have legislated their own model to end no grounds evictions.
Ending no grounds evictions
Under the existing law, the owner of a rental property can choose to end a residential periodic lease at any time for any reason or no reason at all.
This creates insecurity and financial pressure for renters whose lives can be upended at any time.
Under our proposed reforms, homeowners will now need a reason to end a tenancy for both periodic and fixed term leases.
These will include commonsense and reasonable reasons such as:
- The existing rules where the renter is at fault, because of a breach of lease, damage to the property, or non-payment of rent.
- Where the property is being sold or offered for sale with vacant possession.
- 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.
- If the property will no longer be used as a rental home, i.e a change of use.
- Where the owner or their family intend to move into the property.
- 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.
If the homeowner wishes to end a lease, evidence must be provided with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
For those on fixed term agreements of less than 6 months, the termination notice period to tenants will be increased from 30 days to 60 days. For fixed term agreements of more than 6 months, the termination notice period will be increased from 60 days to 90 days.
There will be no change to notice periods for those on periodic agreements.
The package follows a comprehensive consultation process with more than 16,000 submissions and survey responses received from the general public and multiple sector based roundtables.
The Minns Labor Government will now begin stakeholder engagement on these reforms and will aim to introduce new legislation in the September sittings of Parliament to end no grounds and provide more security and stability for renters.
The new reforms are set to begin early next year, subject to this consultation.
