NSW reform on ‘No Grounds’ evictions: why changes can’t come soon enough
Every hour, every day, three renting households in NSW are being evicted through “no grounds” terminations – but this is set to change, says Tenants Union CEO Leo Patterson Ross.
COMMENT by Leo Patterson Ross, CEO Tenants’ Union NSW
Did we do something wrong? Should we not have said anything at all? Imagine being told to leave your home without ever being told why. This is what renters in NSW face.
This creates fear. It reduces trust in renting and in providers of an essential service even those trying to do the right thing. Transparent and genuine dealings should not be something to be scared of.
As we approach a year on from the election, NSW Labor is finalising their plans to reform the state’s eviction laws.
NSW’s million renting households – and their families, friends and communities – look for this reform to make a real difference in the housing crisis.
Rented homes are increasingly homes for families with children and older people. But all renters deserve stability in their homes. Frequent moves have been shown to have physical and mental health impacts.
If renters are going to be forced to move, the pub test says they should at least know why.
Currently around 30,000 renting households every year in NSW aren’t given this most basic of information and respect. That’s three renting households every hour, every day. Of those, at least two are on fixed term agreements.
Eviction reform doesn’t prevent owners from genuine grounds. These include moving back in, redeveloping, or major renovations. But renters can trust that they’re not putting their home at risk by simply asking for repairs or negotiating a rent increase. This sets up a more genuine good faith relationship which currently may be possible but is all too rare.
We are one of only a few countries with this system. European countries have more stable rental housing. They also have more homes per person than we do. Chris Minns speaks about Paris by the harbour. But, no one is being evicted in Paris, nor in Hong Kong, Tokyo, or Vienna, without transparency.
As the authors of a seminal study on the impacts of zoning reform on housing in Auckland noted – increased supply “is a necessary (albeit not sufficient) first step”.
Unlike increasing supply, eviction reform can have positive impacts in both the long- and short-term and costs almost nothing to implement: indeed the Productivity Commission supported this reform way back in 2019.
Reform must be comprehensive. It must address fair reasons for the end of fixed-term contracts and during agreements that have continued on after a contract.
Otherwise, the market will change to avoid the reform, as we’ve seen in Tasmania, Victoria, and Queensland.
In Queensland, eviction papers are now served alongside new contracts as an industry ‘best practice’.
In Victoria, at the end of the first fixed-term, no reasonable grounds are required. The government reports a trend of evictions then to avoid scrutiny of rent increases.
More than 500,000 renter households live in fixed-terms in NSW. The majority renew their terms or switch to periodic arrangements. With this reform, fixed-term arrangements can still be attractive for both landlords and tenants. They give the owner income certainty and the renter greater peace of mind.
Of course, there will be voices who oppose reform and raise the spectre of landlords selling. The same was said about having a Rental Bond Board, the Tribunal, and even basic repair standards.
Good governance looks to the real world evidence. We have improved consumer and renting laws many times over recent decades for greater transparency or clarity and to give providers guidance to meet community expectations. We’ve never had more residential tenancy investors.
If we don’t see this fundamental reform to the renting system put in place effectively, it is like building without getting your foundations in place. Other reforms and even the current laws will continue to fail to make a difference. NSW already knows all too well the problems of building on shaky ground.
LEO PATTERSON ROSS IS THE CEO OF THE TENANTS’ UNION OF NSW
Originally published as NSW reform on ‘No Grounds’ evictions: why changes can’t come soon enough