The rental crisis has deepened to a new low ahead of next week’s introduction of new residential tenancy reforms, according to analysis by the Real Estate Institute of NSW (REINSW), which has called for an urgent shift in the NSW Government’s approach to one of collaboration.
New data released this week by the Australian Bureau of Statistics shows that the number of new loans to investors in NSW fell by more than 2,500 in the March quarter compared to the December quarter.
The downturn in new loans for investment purposes coincides with the number of bonds held by Rental Bonds Online, which is the best indicator of the number of properties rented in NSW, declining by 702 in April.
Additionally, the latest REINSW vacancy rate data shows Sydney’s vacancy rate dropped again from 2.0% in March to sit at just 1.6% in April.
According to REINSW CEO Tim McKibbin, a vacancy rate of between 3% and 6% is considered healthy.
“This combination of distressing data highlights just how far the rental crisis has plummeted,” Mr McKibbin says.
“With new reforms about to start, you might say ‘what’s done is done’. But it doesn’t need to be this way. Finding a home to rent in New South Wales is harder today than it has ever been before and as a community, we owe it to everyone in this boat to strive for a better outcome.
“We strongly urge Government to agree to a collaborative approach involving all stakeholders and to genuinely consider the real world implications of the state’s rental framework.
“In the interests of restoring health to the rental market, we must establish a framework in which tenants’ rights are protected and in which residential investment is encouraged, as this is an essential part of the solution.
“The loss of investment in residential property is having a disastrous impact on renters so we urgently need policies which stop the bleeding and which will stimulate a recovery in investment.
“The rental crisis may have reached a new low but it’s not too late to try to turn it around.”
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