A plan to reform the “unfair rental laws” in New South Wales will be introduced to parliament by the Minns government on Wednesday in a bid to ease cost-of-living pressures for two million renters.
The rental legislation would allow bonds to be transferred from one property to the next and seeks to close loopholes in the existing ban on rent bidding.
By requiring owners and agents to notify all applicants if they receive a higher offer, the government hopes to end the practice of “secret” rent bidding.
The bill is expected to have widespread support despite turmoil within the opposition this week – the first sitting week of the new parliament – after a Nationals leadership spill and a former coalition minister became upper house president.
The reforms were among election promises made by Labor.
The NSW premier, Chris Minns, says renting is often an “anxious and challenging” process, from finding a place to live to the costs incurred while moving house.
“This is a sensible cost-of-living measure to help ease the pressure on the over 30% of people in NSW currently renting,” the premier said ahead of the introduction of the bill.
“These changes will create a fairer rental regime in this state by providing greater certainty as well as flexibility for both renters and owners.”
Minns has repeatedly ruled out freezes or caps on rents, insisting the measures his team took to the March election would make a difference to renters amid cost-of-living and housing crises across much of the state.
The government is also looking to hire a rental commissioner and is working on reforms to end no-grounds evictions, making it easier for renters to have pets and protect the personal data of tenants.
The Greens and independent MPs have called on the government to go further in their reform agenda and are expected to use their numbers in both houses, in which Labor is governing with a minority, to push for changes.
The state’s housing minister, Rose Jackson, said the laws needed to change to reflect that more people are now “renting for life”.
“There is a relationship between our unfair rental laws and increases in housing insecurity,” she said.
“As our housing market changes, we need to update and modernise our laws to ensure we are getting the balance right.”
The better regulation minister, Anoulack Chanthivong, said the government also needed to work on boosting the number of homes.
“Our focus is on getting the balance right by implementing responsible reforms that reduce stress and pressure for renters while also looking at ways to drive new supply into the market,” he said.
He hopes allowing a renter to move rental bonds, without needing to use additional money for a new property while waiting for a refund from an existing home, will “free up cash and make life easier for renters”.
The Labor government on Tuesday also successfully had Nationals MP Ben Franklin, a former Coalition arts minister, appointed upper house president. The move effectively removed a vote from the Coalition, and will make the passage of legislation for Labor smoother.
The decision was decried by Nationals and Liberals as “treacherous”, and led to a Monday afternoon leadership spill that saw Paul Toole axed as Nationals leader in favour of Dubbo MP Dugald Saunders, sparking a rejig of the Coalition agreement with just hours to spare.
Saunders would not comment on the future of Franklin’s involvement with the party before Tuesday’s vote.
But the deputy Nationals leader, Bronnie Taylor, said it had been a “very disappointing process”.
“Ben has made his own decision and he will be responsible for it,” she said.
The government will also use the first week of parliament to introduce legislation to protect Sydney Water from future privatisation.