MEDIA RELEASE: The Real Estate Institute of NSW (REINSW) has slammed the Minns Government’s proposed tenancy reforms – the so-called ‘no grounds evictions’ ban – because it will drive more investors away from the market and make the dire situation for renters even worse.
“The Government has dressed this reform up as tenant-friendly to divert tenants’ frustrations away from its consistent failure to provide more housing for people and to encourage more investors to make their properties available for rent,” says REINSW CEO Tim McKibbin.
“The cruel irony for tenants is that every time you make residential property a less attractive investment, the more you drive investors away, and the less homes there are to rent.
“The result is less choice for renters. This is not a forecast outcome. It’s happening now.”
The number of rental bonds held by the NSW Bonds Board decreased by 1,251 in June. Each bond held effectively equates to one property rented. For this number to be decreasing is hugely concerning, especially at a time when the severe shortage of rental accommodation is creating hardship for so many people, Mr McKibbin says.
“Investors can put their money into shares, commercial property, fixed interest and other alternatives. For them to choose residential property, it has to be the most attractive option, and tenants depend on investors making this choice. But in the current climate, investors are net sellers,” Mr McKibbin says.
“The number of investors selling properties is outstripping the number of investors buying properties, a trend reflected in near-zero vacancy rates and lengthening queues of hopeful tenants at inspections.
“In announcing this reform, the NSW Government wrongly suggests landlords evict tenants without good reason. The reality is that landlords greatly value good tenants. No tenant means no rent and landlords are dependent on rent to service debt or, as retirees, to pay for their living expenses.
“In presenting the need for reform, Government is once again portraying landlords in an unfair light. They deserve better and tenants do too.
“That’s why it will fail to improve renters’ circumstances. Investors will have more reasons to invest elsewhere and tenants will find they have even less choice. Upward pressure on rents is the predictable outcome.
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For any further information
Please contact Tim McKibbin, REINSW Chief Executive Officer, 0415 931 013, [email protected]
About REINSW
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.