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HomeNewsRentals Sydney: NSW government bans ‘rental auctions’ to fix housing in affordability

Rentals Sydney: NSW government bans ‘rental auctions’ to fix housing in affordability

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A controversial practice used to rent-out properties will be banned in NSW by this weekend, though there is one catch.

The Perrottet government has promised to regulate the rental market by prohibiting “rental auctions” by Saturday, December 17.

The proposed changes will require real estate agents to advertise a property with a fixed rental price.

However, “unsolicited proposals” will still be legal – the ban will not prevent renters from offering a higher price to that advertised to beat out competition for a property.

Still, the government’s move aims to tackle soaring rentals across the state, where massive increases have become widespread in response to soaring interest rates.

“Auctions are over when it comes to the rental market,” NSW Premier Dominic Perrottet told reporters.

NSW Labor has backed the proposal, but criticised the Coalition for not moving to tackle the practice sooner.

Victoria, Queensland and Tasmania each have their own version of the regulation.

Minister Customer Service Victor Dominello said the ban will include a prohibition on rental property advertised “by negotiation”, “inviting offer” or a “price range”.

It will also include the creation of a rental commissioner role, who will assess if evictions were made on reasonable grounds, and a portable bonds scheme which will allow bonds to be transferred between landlords.

Median weekly advertised rents have skyrocketed by 10.3 per cent in the past year, according to a report by PropTrack Market Insight.

A home in Sydney now rents for a median weekly price of $640 – compared to the median national rent of $520 a week.

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