An end to no-grounds evictions in NSW looks likely to be introduced next year, with the Labor state government describing the change as one of the biggest reforms to the rental market in a decade.
More than 16,000 submissions and survey responses have reportedly been received from the general public and ‘multiple sector based roundtables’ as part of consultation on the government’s proposed changes to residential renting rules.
More stakeholder engagement is promised, with an aim to introduce new laws to Parliament in September and new reforms to take effect early next year.
‘More people are renting than ever before,’ a media release announcing the change this week reads, ‘with around 33 per cent of the NSW population renting, an increase of 17.6 per cent since 2016’.
Historically low vacancy rates, median rent prices increasing by around seven per cent over the last 12 months, and a system that leaves renters vulnerable to eviction ‘at any time’ are also cited.
The government says ending no grounds evictions will bring NSW into line with other states including the ACT, South Australia and Victoria.
Six reasons allowed for landlords to end leases
‘Under our proposed reforms, homeowners will now need a reason to end a tenancy for both periodic and fixed term leases,’ the government’s announcement reads.
‘These will include commonsense and reasonable reasons such as:
- The existing rules where the renter is at fault, because of a breach of lease, damage to the property, or non-payment of rent;
- Where the property is being sold or offered for sale with vacant possession;
- Where significant repairs or renovations make inhabiting the property too difficult or it will be demolished. If a homeowner seeks to renovate or repair a home, it cannot be relisted for a period of at least four weeks;
- If the property will no longer be used as a rental home, i.e a change of use;
- Where the owner or their family intend to move into the property;
- If the renter is no longer eligible for an affordable housing program or if the property is purpose-built student accommodation and the renter is no longer a student.’
Homeowners wishing to end a lease but found to be providing non-genuine reasons are to face penalties.
All termination notices are to include evidence of the reason.
More time for renters to find elsewhere to live
Residential landlords will have to give tenants on fixed-term contracts more notice before terminating their leases.
Landlords currently only have to give tenants on leases shorter than six months 30 days’ notice to leave but if Labor’s reforms are successful, this will change to 60 days.
The minimum termination notice period for tenants on leases longer than six months is to increase from 60 days to 90 days.
There will be no change to notice periods for those on periodic agreements, which is 90 days.
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