Making renting fairer

Renting a property is more often like an auction house bidding war, with hopeful renters trying to outbid each other just to put a roof over their heads. So, what’s the solution so that people don’t continually struggle to rent a property and at an equitable price? A Minns Labor Government will make renting in New South Wales fairer and more affordable by establishing a Rental Commissioner, and having legislation ready to go when Parliament is recalled to ban secret rent bidding and to introduce a portable bond scheme.

13 December 2022

 

ONE in three New South Wales households are now renters. But that number will only increase, as rising house prices and stagnant wages continue make owning your own home increasingly difficult.

 

More and more families and people are now becoming lifetime renters. Additionally, more than a third of renters are paying more than 30 per cent of their household income towards their weekly rent.

 

A NSW Rental Commissioner will be an advocate and voice for renters by working closely with government, consumer affairs, stakeholders and renters to:

 

• Lead consultation and drafting of legislation to introduce reasons for eviction;

 

• Implement Labor's portable bonds scheme;

 

• Oversee a ban on secret rent bidding;

 

• Identify barriers to increasing housing supply for renting;

 

• Identify practices and gaps that erode the rights of renters;

 

• Identify options for longer term agreements, giving security and certainty to both renters and owners;

 

• Initiatives including educational resources for renters and owners to increase knowledge of their rights;

 

• Gather data on renting and survey renters to help inform future policy making; and

 

• Identify ways for renters to more easily access energy efficiency initiatives.

 

But Labor understands there is a cost of living crisis now. That’s why when Parliament is recalled to pass legislation on coal caps, Labor will also introduce legislation to crack down on secret rent bidding and for a portable bonds scheme.

 

NSW Labor Leader, Chris Minns said, “If parliament sits before the March election, we’ll have legislation ready to go to make renting fairer to end the secret bidding wars that drive up the cost of rentals, and for a portable bond scheme.

 

“And if we win, we’ll install a rental commissioner, whose job will be to hold landlords and agents to a high standard to ensure fairness across the rental market.

 

“I know how important and difficult housing affordability has become, and these measures help to ensure every person has access to a safe and affordable roof over their head, regardless of whether you rent or own your own home.”

 

Secret rent bidding encourages renters to continually out bid each other on price to secure a home, driving up the costs of rent. It has to stop.

 

The Government has had 12 years to act on this dodgy practice that is already outlawed in other states, but they have sidelined and ignored renters.

 

NSW Shadow Minister for Better Regulation and Innovation, Courtney Houses said, “For 12 years, this Government has sidelined and ignored renters. We understand renters are under increasing pressure and have a clear plan to give them immediate relief by ending secret rent bidding, introducing reasonable grounds for evictions and implementing a portable bonds scheme.

 

“But to solve the larger issues for renters, we must ensure that there is more housing available on the private rental market. Vacancy rates are at records lows, with more and more investors leaving the market. Labor's plan to target transport land holdings close to public transport for housing will increase the overall supply of housing available for both home buyers and renters.”

 

Rose Jackson, NSW Shadow Minister for Housing and Homelessness, said, “Our current rental market is unfair and is directly contributing to increased homelessness.

 

“It’s simply too hard to find and keep stable and secure housing in the rental market, particularly in some regional areas.

 

“More and more people are renting - and in many cases renting for life. They need security for them and their children.”

 

Labor’s plan will mean that all rental transactions will be open and transparent. If tenants want to offer more than the listed price, this is disclosed to all applicants who then have the chance to match the offer.

 

This builds on Labor’s comprehensive renter's package, which is aimed at reducing upfront costs and ensuring fairness for renters, while also providing certainty to mum and dad investors.

 

Labor’s plan to making renting fairer and affordable includes:

 

• Establishing a NSW Rental Commissioner to be an advocate and voice for renters, working closely with both renters and owners, along with government and stakeholders;

 

• Introducing a portable bonds scheme to help relieve some of the cost pressures of moving homes by allowing renters to transfer their bond from one property to another;

 

• Introducing reasons for eviction;

 

• Banning secret rent bidding to ensure more transparency for renters;

 

• Increasing housing supply by looking at transport land holdings close to public transport; and

 

• Targeting 30 per cent social, affordable, and universal housing on surplus public land, including an audit of all available public land close to Metro stations and infrastructure.

 

Not surprisingly, hot on the heels of Labor's announcement the NSW Government yesterday announced that they will make the practice of rent bidding illegal to improve affordability for those seeking rental accommodation amid high cost of living pressures.

 

Premier Dominic Perrottet said banning rent bidding would help prospective tenants secure housing in a tight rental property market in a fair way.

 

“It’s time to put an end to this practice and give more people security and certainty so they can plan for their future,” Mr Perrottet said.

 

“The search for a rental property is tough enough without it turning into a bidding war that pushes people beyond their comfort level.

 

“An advertised rental fee should be just that and we will take action to ensure rental bidding is outlawed.”

 

The outlawing of solicited rent bidding, the practice where a landlord or agent invites, suggests or asks prospective tenants to increase their offer of rent for a property in order to secure it, will be made through urgent changes to regulations under the Property and Stock Agents Act 2002.

 

The new regulations will apply to all new listings from Saturday, 17 December 2022.

 

Labor Leader Chris Minns said that Labor announced these changes last week and the Government has refused to make any reform or policy changes for the last 12 years.

 

"On the eve of an election campaign, they've released a policy at the eleventh hour," said Mr Minns.

 

"Primarily because people across New South Wales have been saying, you have to do something, the deck is stacked against us, we can’t get into the housing market. As a result, they’re leaving New South Wales and going to other states.

 

"When Parliament goes back, let's pass legislation. We can do it in a bipartisan way. Labor will introduce the bill, the Government can support the bill before Christmas, and we can get it done and dusted so that the people in New South Wales that rent, can have the certainty they need in a very difficult market place.

 

"This is a big challenge to the New South Wales Premier. If he's serious about making changes in relation to renting in New South Wales, back this legislation and let's get it through the Parliament when we return next week."

 

NSW Shadow Minister for Better Regulation and Innovation, Courtney Houses said that the rental crisis is not something that just cropped up overnight.

 

"This rental crisis something that has been a slow burn for a long time. And we've been working with renters, with rental advocacy groups, and, because we understand, with the community more broadly, to develop our policy, because if we're elected in March, we understand how important renters are and we understand the pressures that they're facing," Houssos said.

 

"It is clear that a rental property that is offered for rent needs to be appropriate and safe and to standard, and that if it's not, then renters need to have an easy avenue of appeal."

 

Minister for Fair Trading Victor Dominello said the reforms to regulations struck the right balance between the interests of renters, landlords and real estate agents.

 

“It can be very distressing for prospective tenants who have submitted a rental application only to be told to increase their offer to improve their prospects of securing a property,” Mr Dominello said.

 

“From this weekend, agents will be prohibited from inducing a prospective tenant to offer an amount higher than that advertised for the property.

 

“Further, real estate agents cannot advertise a property unless it specifies the rent payable for the property.”

 

NSW Fair Trading will work with real estate agents and landlords to ensure they are aware of and comply with the new regulations.

 

Advice for renters is available on the NSW Fair Trading website www.fairtrading.nsw.gov.au/housing-and-property/renting.