Illegal renting practice to be hauled over the coals
Both Labor and Liberal politicians have backed calls to reform the NSW rental market and rental practices.
As the property crisis deepens amid rising rents and dwindling stock, rental bidding in particular has been highlighted as a major issue although the practice is banned in Victoria, Tasmania and Queensland.
However, in NSW, agents and landlords can advertise properties without a fixed rate, or just list a range. The practice creates a situation where applicants can opt to pay high rent, outbidding those who can’t afford to.
This comes as vacancy rates have dipped to levels not seen since 2003, while prices have increased by 3.2%, recent data has revealed.
Speaking with The Daily Telegraph, Fair Trading Minister Victor Dominello said the Department of Fair Trading are currently preparing for a complete overhaul.
“This is obviously an area where vulnerable people are exposed and needs reform,” he said.
“I have asked my agency to investigate and come back with recommendations.”
Speaking to Mr Dominello on Monday morning, 2GB’s Chris Smith claimed “dodgy real estate agents” were part of the reason NSW residents are pressured to spend so much to secure a rental property.
Mr Dominello said that while some landlords have been forced to increase rents due to rising interest rates, the underlying issue comes down to a lack of rental properties being offered.
“That’s the heart of it. It’s supply and demand,” he told Smith.
Shadow Minister for Water, Housing and Homelessness Rose Jackson also condemned the trend and welcomed a review into the practice.
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