The Real Estate Institute of NSW (REINSW) has slammed the Minns Government’s proposed tenancy reforms – the so-called ‘no grounds evictions’ ban – because it will drive more investors away from the market and make the dire situation for renters even worse.

“The Government has dressed this reform up as tenant-friendly to divert tenants’ frustrations away from its consistent failure to provide more housing for people and to encourage more investors to make their properties available for rent,” says REINSW CEO  Tim McKibbin.

“The cruel irony for tenants is that every time you make residential property a less attractive investment, the more you drive investors away, and the less homes there are  to rent.

“The result is less choice for renters. This is not a forecast outcome. It’s happening now.”

The number of rental bonds held by the NSW Bonds Board decreased by 1,251 in June. Each bond held effectively equates to one property rented. For this number to be  decreasing is hugely concerning, especially at a time when the severe shortage of rental  accommodation is creating hardship for so many people, Mr McKibbin says.

“Investors can put their money into shares, commercial property, fixed interest and other alternatives. For them to choose residential property, it has to be the most attractive option and tenants depend on investors making this choice. But in the current climate, investors are net sellers,” Mr McKibbin says.

“The number of investors selling properties is outstripping the number of investors buying properties, a trend reflected in near-zero vacancy rates and lengthening queues of hopeful tenants at inspections.

“In announcing this reform, the NSW Government wrongly suggests landlords evict tenants without good reason. The reality is that landlords greatly value good tenants. No  tenant means no rent and landlords are dependent on rent to service debt or, as retirees, to pay for their living expenses. 

“In presenting the need for reform, Government is once again portraying landlords in an unfair light. They deserve better and tenants do too.

“That’s why it will fail to improve renters’ circumstances. Investors will have more reasons to invest elsewhere and tenants will find they have even less choice. Upward  pressure on rents is the predictable outcome.

“Unfortunately for NCAT, there is a spike in disputes coming. There are endless family, health and other reasons for a landlord to want to take possession of a property they own. Removing their right to do so unless they satisfy a narrow set of criteria will open a  Pandora’s Box,” Mr McKibbin says.