South Australia to ban ‘unfair’ rental bidding to aid housing crisis

One state is set to ban an “unfair” practice that favours renters with deeper pockets while leaving others without a home.

As the nationwide rental crisis tightens its grip on those looking for a home, relief is on the way for people in one state.

The practice known as rental bidding, where tenants are encouraged to offer above the asking price of a property, is set to be outlawed in South Australia.

With the median rent in Adelaide now at a record high $450 per week, vacancy is among the lowest in the nation, sitting at just 0.6 per cent.

On Wednesday, the state government announced plans to ban bidding as part of reforms to the Residential Tenancies Act soon to be introduced to parliament.

Consumer and Business Affairs Minister Andrea Michaels said the rental market was tough on South Australians, with rental prices continuing to rise.

“The practice of rent bidding unfairly drives up prices and is contributing to the current rental crisis by making it more and more difficult for South Australians to find affordable rental accommodation,” Ms Michaels said.

Consumer and Business Affairs Minister Andrea Michaels said rental bidding would be banned under legislation reform. Picture: NCA NewsWire / Kelly Barnes

“That’s why we are cracking down on rent bidding because I want to make the system fairer for South Australians looking for a home.”

Under the reforms, landlords will no longer be able to advertise properties with a rent range, put properties up for rent auction or solicit offers over the asking price.

Where third parties are involved in facilitating applications, any assessment of a potential tenant cannot be based on an offer to pay higher than the asking price.

Under the changes, South Australia will fall in line with other states that have already outlawed the practice.

Shelter SA executive director Alice Clark said an environment of increased rental prices and a lack of availability meant it wasn’t surprising people were taking desperate measures.

“It is encouraging to see Minister Michaels adjust the legislative levers that can improve an aspect of affordability and prohibit practices that take advantage of applicants who cannot secure a home,” Ms Clark said.

“Shelter SA welcomes the modernisation of rental laws and the proposed improvements to prohibit rent bidding, advertising rent ranges and legislating against the conduct of rental auctions.”