Renters face challenges: NSW reforms criticized,
The Real Estate Institute of New South Wales, known as REINSW, has expressed criticism regarding the government’s recent rental reforms.
They argue that these changes will create “adverse impacts” for renters in the region.
“These reforms are being promoted as a victory for renters, but available evidence indicates this claim is misleading,” says CEO Tim McKibbin.
He adds, “This marks a dark day for renters living in New South Wales.”
On Friday, the NSW government enacted various rental reforms, which include a ban on no-grounds evictions.
Additionally, these reforms make it easier for renters to have pets and limit rent increases to just once a year.
McKibbin contends that these reforms will negatively impact tenants in New South Wales.
“In recent years, a wave of anti-landlord reforms and rhetoric from the government has made investment in residential property challenging,” McKibbin explains.
“Investors have access to less risky and less troublesome options for investment. Consequently, every time an investor sells, another rental property disappears from the market.”
Given the incredibly tight vacancy rates, REINSW is concerned that deterring private investment will further limit rental supply.
This, in turn, is likely to lead to rising rents in the area.
The institute pointed out that “similar anti-landlord legislation” implemented in Victoria resulted in a decline of 22,000 rental properties.
This statistic was revealed in a June report by Victoria’s Department of Families, Fairness and Housing.
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Despite the decrease in rental bonds, rent prices remained stable during the June quarter in Victoria.
According to Domain data, Melbourne house and unit rents recorded the smallest increases for a September quarter since 2021.
Specifically, house rents are increasing three times slower than they did last year, at 5.5% compared to 17%.
Similarly, unit rents are rising four times slower this year, with increases of 5.8% versus 22.4% last year.
Economists will closely monitor rent prices in both Victoria and New South Wales in the months ahead.
