Making Renting Fairer in NSW

The Minns Labor Government is delivering on its election commitment to improve rental laws and make renting fairer by announcing new legislation to end no-grounds evictions. This change is one of the biggest reforms to the rental market in a decade and aims to balance the interests of renters and homeowners amidst the housing crisis in NSW.

With around 33 percent of the NSW population renting—a 17.6 percent increase since 2016—the current rental market has seen historically low vacancy rates and median rent prices rising by approximately 7 percent over the last 12 months. This has left renters vulnerable to eviction at any time under the existing laws.

Key Reforms: Ending No-Grounds Evictions

Under current legislation, property owners can end a residential periodic lease at any time for any reason or no reason. The proposed reforms will require homeowners to provide a valid reason to end a tenancy for both periodic and fixed-term leases. These reasons include:

• Breaches of Lease: Such as damage to the property or non-payment of rent.
• Property Sale: When the property is being sold or offered for sale with vacant possession.
• Significant Repairs or Renovations: Making the property uninhabitable or if it is to be demolished. Homeowners cannot relist the property for at least four weeks after such renovations.
• Change of Use: If the property will no longer be used as a rental home.
• Owner Occupancy: If the owner or their family intends to move into the property.
• Eligibility Changes: 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 must provide evidence with a termination notice, and penalties will apply for non-genuine reasons.

Notice Period Adjustments

• Fixed-Term Agreements (Less than 6 Months): The termination notice period will increase from 30 days to 60 days.
• Fixed-Term Agreements (More than 6 Months): The termination notice period will increase from 60 days to 90 days.
• Periodic Agreements: No change to notice periods.

Comprehensive Consultation

The package follows extensive consultations with over 16,000 submissions and survey responses from the general public, as well as multiple sector-based roundtables. The government will begin further stakeholder engagement on these reforms, aiming to introduce new legislation in the September sittings of Parliament. The new reforms are expected to commence early next year, subject to this consultation to making renting fairer.

Official Statements

Premier Chris Minns stated, “Bad tenants will still be able to be evicted. We don’t want homeowners to have to put up with bad behaviour. But anyone who rents in NSW knows just how anxious and challenging renting can be at the moment. We believe this reform gets the balance right, giving both homeowners and renters more certainty and peace of mind.”

Minister for Better Regulation and Fair Trading Anoulack Chanthivong emphasised, “Around a third of the people in NSW rent and they deserve secure and fair housing. The overwhelming message from the community has been that people rent a home, not just a house. We’ve designed a package that works for the NSW market.”

Minister for Housing and Homelessness, Minister for Youth Rose Jackson added, “Creating a fairer rental system in NSW is crucial to rebuilding our housing system. Renters deserve more security, and ending no grounds evictions is an important first step.”

NSW Rental Commissioner Trina Jones noted, “Putting together this package has required bringing together renters, owners, agents, advocates, and industry leaders. It’s about striking a balance that upholds the rights and responsibilities of all involved.”

The Minns Labor Government’s commitment to ending no-grounds evictions marks a major step toward creating a fair, quality, and affordable rental market in NSW.

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