Member for The Entrance David Mehan has welcomed proposed changes to the state’s rental laws which will put an end to no-grounds evictions.
He said the changes would see one of the biggest reforms to the rental market in a decade and aimed to get the balance right between renters and homeowners.
Housing is the largest single cost of living issue facing the people of NSW with about 33 per cent of the population renting – an increase of 17.6 per cent since 2016.
The current rental market in NSW is the toughest that renters have seen for decades with historically low vacancy rates, median rent prices increasing by about seven per cent over the past 12 months, and a system that leaves them vulnerable to eviction at any time.
The situation on the Central Coast is dire.
“These new reforms have been a long time coming and aim to get the balance right in terms of rights and responsibilities, security to renters and certainty to the rental market,” Mehan said.
“Addressing our current housing crisis is imperative and a fairer rental system in NSW ensures that we are continuing to move in that direction.”
The changes will bring NSW into line with other states including the ACT, South Australia and Victoria who have legislated their own model to end no-grounds evictions.
Under the existing law, the owner of a rental property can choose to end a residential periodic lease at any time for any reason or no reason at all.
This creates insecurity and financial pressure for renters whose lives can be upended at any time.
Under the proposed reforms, homeowners will now need a reason to end a tenancy for both periodic and fixed term leases.
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 (in which case it cannot be relisted for a period of at least four weeks); if the property will no longer be used as a rental home; where the owner or their family intend to move into the property; and 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.
If the homeowner wishes to end a lease, evidence must be provided with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
For those on fixed term agreements of less than six months, the termination notice period to tenants will be increased from 30 days to 60 days.
For fixed term agreements of more than six months, the termination notice period will be increased from 60 days to 90 days.
There will be no change to notice periods for those on periodic agreements.
The package follows a comprehensive consultation process with more than 16,000 submissions and survey responses received from the general public and multiple sector-based roundtables.
The government will now begin stakeholder engagement on the reforms and will aim to introduce new legislation in the September sittings of Parliament to provide more security and stability for renters.
The new reforms are set to begin early next year, subject to the consultation.