NSW Government Announces Plan To Ban ‘No-Fault’ Evictions

The New South Wales government has announced plans to introduce legislation that will ban no-fault evictions, preventing landlords from terminating leases without a “reasonable” excuse. 

The new law, expected to take effect next year, aims to provide greater security for tenants by requiring landlords to justify their reasons for ending a tenancy.

In February this year, Greens MP Jenny Leong introduced the Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024, seeking to amend the Residential Tenancies Act 2010. 

Proposed changes to the 2010 Act included: 

• Landlords will no longer have the right to end rental agreements without a valid reason.
• It will specify reasons for which a landlord can terminate a rental agreement.
• It would be considered a legal offence for landlords if they do not ensure that rental properties are used according to the specified reasons for termination.
• The Civil and Administrative Tribunal could issue orders if it found rental properties were not used as agreed upon in the termination of the rental agreement.

Currently NSW landlords can end rolling leases at any time without reason, so long as 90 days notice is provided. 

Under the proposed legislation, landlords will need to provide a valid reason for eviction. Reasons could include property sale,  breach of lease terms by the tenant or renovation.

The legislation to ban “no-fault” evictions will be introduced next month, offering renters increased security and housing stability in the state. 

A Win For Tenants 

The Tenants’ Union of NSW applauded the government’s announcement, describing the legislation as a “pivotal and long awaited” piece of reform that ensures that all renters will be provided with a “genuine reason” if they are being evicted. This legislation would deliver “much-needed security and stability for people renting their homes across NSW”.

Leo Patterson Ross, CEO of the Tenants’ Union of NSW praised the government’s response to the housing crisis.

“We are thrilled to see the government taking real action to address this problem. No grounds evictions result in housing insecurity, financial strain, and emotional distress.

“Ending no grounds evictions is a critical step in ensuring that renters can feel secure in their homes without the constant fear of eviction”, Ross said. 

Greens NSW Housing and Homelessness spokesperson Jenny Leong MP welcomed the new laws to ban unfair no grounds evictions for all renters statewide.  

USyd student Andy described the planned legislation as “really important” and “necessary”. 

“It definitely makes me feel more secure about my living situation considering I’ve heard previous stories about people being kicked out with no notice”, he said. 

Andy highlighted a need for increased government intervention through rent control measures to protect tenants. 

“Last year my partner had to temporarily stay with relatives since the original place’s rent increased by $100 per week after the lease ended”, he added. 

490 Days Since Pledge to Abolish No-Fault Evictions 

Greens MP Leong praised the proposed legislation as a significant win for tenants but pointed out that it had been nearly 500 days since the Labor government initially pledged to abolish no-fault evictions —a promise that had been long-overdue. 

“It has been 490 days since NSW Labor ran on a promise to end no grounds evictions – in that time more than 40,000 renters in NSW have been evicted for no reason. 

Leong added that a Greens bill in an upcoming inquiry had compelled Labor to fulfill their “overdue” promise.

“We know bans like this need to be comprehensive without loopholes for greedy real estate agents and big investors to game the system – which is happening in other states. 

“The next big challenge is to make sure the rules in NSW are airtight and come with evidence requirements and strong penalties for landlords who lie to evict a tenant”, MP Leong said.