Rental bidding set to be outlawed in NSW
Rental bidding, which is flourishing amid low vacancy rates and rising interest rates, is set to be banned in New South Wales.
Rental bidding is set to be outlawed in New South Wales by Christmas.
Under the proposed changes, prospective renters won't be able to offer a higher price than what's advertised to secure a property.
Rental bidding has become more widespread amid a national rental crisis.
It occurs tenants, desperate for a place to live amid the severe shortage of rental accommodation, feel they have no choice but to offer to pay more than the asking rent.
Under the new legislation expected to soon be introduced the Perrottet Government and supported by the opposition Labor Government, real estate agents and property owners will only be allowed to advertise a property with a fixed rental price.
The promise ahead of the March election comes amid skyrocketing Sydney rents as well as those in regional areas.
Peak body slams bidding law changes
While Labor’s only criticism of the plan was that it had not happened sooner, the Real Estate Institute of NSW (REINSW) was scathing of the proposed legislation.
“As the NSW Government’s blame game that seeks to paint landlords and agents as the cause of the state’s rental crisis takes another dishonest turn, REINSW has issued the Government a challenge: tell the public how you will increase rental supply so tenants have a place to live,” REINSW CEO Tim McKibbin said.
“The Government’s landlord-bashing strategy has not helped with supply; it has had the opposite effect and a new strategy is needed.
“It’s time for Government to be accountable.
“Only through incentivising investment in this sector of the economy can supply be addressed and begin to meet demand.
Mr McKibbin said the Government knows the problem is supply but has proven its inability to implement a solution.
Over the last 12 months, the NSW population has grown by over 100,000 people while the number of rental properties has declined by 50,000.
“When 40 people apply for a rental property, irrespective of what rent is paid, 39 people still have nowhere to live.
“Instead of blaming the landlords and agents in this scenario who help someone.”
With vacancy rates so low, insufficient new supply in the pipeline and rising interest rates hitting property investors in the hip pocket, the practice of rental bidding has flourished.
Victoria, Queensland and Tasmania have introduced reforms to ban rent bidding but there is no legislation against the practice in the other states and territories.