NSW government rent bidding ban will be in place by Saturday after Sydney real estate agents exposed over ‘auction-like’ practice
Legislation stopping ‘solicited rent bidding’ from NSW real estate agents and landlords will be in place by the weekend as government rushes ban on cruel practice.
NSW
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Real estate agents will be banned from asking renters to bid higher than a property’s listing price from this Saturday.
The government will rush through urgent regulation changes to ban “solicited rent bidding,” applying to all new listings from December 17.
The Daily Telegraph revealed that Premier Dominic Perrottet would move to ban rent bidding on Monday.
“It’s time to put an end to this practice and give more people security and certainty so they can plan for their future,” he said.
It follows a Daily Telegraph investigation which revealed more than 80 per cent of real estate agents are encouraging “rent bidding’’ as Sydney faces a rental crisis that is leaving desperate would-be tenants without a home.
Of more than 40 real estate agents across Sydney’s east and inner west contacted by the Telegraph last week, 83 per cent either directly or indirectly encouraged prospective tenants to offer more to secure a property.
The Perrottet government will implement a ban on rent bidding by regulation.
“The search for a rental property is tough enough without it turning into an all-out bidding war that can force desperate tenants to commit to payments well beyond their comfort level,” Premier Dominic Perrottet said.
MINNS PUSHES FOR MORE REFORM
Labor Leader Chris Minns will seek to go further than a ban on soliciting, preparing to introduce legislation forcing agents to disclose to rental applicants if someone else has lodged a bid higher than the rent advertised for a property.
Under the government plan, agents will no longer be able to encourage higher offers.
Agents will also not be able to advertise an apartment unless it specifies the rent payable for the property.
“The solution needs to get the balance right for the people of NSW,” Customer Service Minister Victor Dominello said.
The move would bring NSW into line with Queensland, Victoria and Tasmania where similar regulations are in place.
The Telegraph can also reveal NSW Labor will put in place a dedicated rental commissioner if it wins the next election, tasked with aiding renters if the party wins the March state poll.
The commissioner who would lead the charge to legislate against no-grounds evictions, and implement Labor’s portable bonds scheme – allowing renters to transfer their bond directly from one landlord to another when they move.
Mr Minns said the commissioner’s job would be to hold “landlords and agents to a high standard to ensure fairness in the rental market”.
“I know how important and difficult housing affordability has become, and these measures help to ensure every person has access to a safe and affordable roof over their head, regardless of whether you rent or own your own home,” he said.
One agent the Telegraph spoke to in the past week openly encouraged increased offers above the asking price.
“The asking price is not enough, there’s lots of interest,” they said when asked if the advertised price of $950 a week was enough to secure a lease on a two-bedroom unit in Bondi. “If you are on the shortlist and you have competition that has made a higher offer, I’ll give you a courtesy call to see if you want to change your offer,” they said.
A Chippendale-based agent said offering more rent puts applicants as top priority.
“The market has changed; before you would just put in an application, now it’s kind of like an auction,” he said.
“This month, the most we’ve gone over the asking price was $80 but last month we had one go over $200.”
A Surry Hills agent said that putting in an offer at the asking price was fine, but applicants might be approached to increase their offer.
For couple Swan and Eloi, the hunt for a place to call their own has been challenging.
“We know there’d be a bidding war even when we’d go during the week,” Swan said.
“We’ve seen 50 people queuing for apartments that are very expensive and we’re like, ‘we’re not even going to bother’.
Zara Kelly has been searching for a rental for two weeks after trying to move closer to the Prince of Wales Hospital where she works.
Ms Kelly said finding a rental in the Eastern Suburbs was extremely difficult as many people often felt obliged to put in higher offers than the asking price.
“It’s really hard, it’s like an auction,” she said.
Jemima Mowbray, policy and advocacy manager of the Tenant’s Union, said things needed to change.
“We know rent bidding is happening because of the very tight market and shortage of available properties,” she said. “It’s a source of deep frustration for people that they don’t know whether they can afford the property.”
Real Estate Institute of NSW chief Tim McKibbin said the government was to blame for the crisis. “We don’t have enough property in the market,” he said.
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