Nineteen community organisations have come together to warn the NSW Government’s proposed rent bidding legislation will spark legal rental auctions and further push up prices.
Article in Mirage News.
In a letter to the Legislative Assembly Select Committee on the Residential Tenancies Amendment (Rental Fairness) Bill 2023 co-ordinated by Homelessness NSW and the NSW Tenants’ Union, the organisations including NCOSS, Shelter NSW and Redfern Legal Centre warn the current proposal to ban secret rent bidding will actually make the situation worse by encouraging a transparent, regulated rental auction process.
In their letter to committee members scrutinising the bill, the organsiations warn of possible unintended consequences.
“The current draft legislation requires owners and agents to notify applicants of other offers that are higher than the advertised price but does not prevent them from accepting such offers,” the letter reads.
“This means that rent bidding can still occur, and that tenants can still be pressured to pay more than they can afford. We have become aware that the recent media on the practice has also led to increased bids from prospective tenants.”
The organisations are calling for changes to ban rent bidding by preventing agents from accepting a price above the listing price.