The experience of other jurisdictions, including Victoria and New Zealand, of removing landlords’ rights has been a clear deterioration in conditions for renters. Yet despite the evidence, the NSW Government appears set on repeating the same mistakes, says the Real Estate Institute of NSW (REINSW).
In Victoria, new data from the Department of Families, Fairness and Housing shows the number of rental properties in the state fell by nearly 22,000 this year as the investor exodus gathered momentum on the back of anti-landlord legislation.
It follows a similar experience in New Zealand, in which the 2021 ban on so-called ‘no grounds’ evictions had such a significant impact on reducing rental supply that a Bill to reinstate a landlord’s right to take possession of their property was introduced this year.
REINSW CEO Tim McKibbin says the lessons for the NSW Government are crystal clear.
“The removal of landlords’ rights under the guise of populist rental reforms has had a clear negative impact on renters,” REINSW CEO Tim McKibbin says.
“The rental reforms the NSW Government has signalled its intention to pursue will result in more investors selling up or opting for a short-term accommodation strategy, both of which remove more properties from the private rental market.
“This is already happening and it’s happening at a time when the NSW population is increasing by over 15,000 people each month. The rental market is in crisis and we need solutions, not reforms that we know because of direct and recent experience will make the problem worse.
“With the foreshadowed introduction of anti-landlord reforms in Parliament, the NSW Government will consciously seek the same terrible fate for the rental market in our state.
“Of course, this is avoidable. An impartial consideration of the evidence paints a clear picture. When Governments make investing in residential property less attractive as an investment, investors put their money elsewhere. And fewer properties to rent means even less choice for renters.
“This has been the experience elsewhere and will be the experience in New South Wales.
“To solve the rental crisis we need to increase rental supply. This means new development, eradicating planning delays, and making it attractive to investors to invest in residential property,” Mr McKibbin says.
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