Rising house prices call for an urge to preserve security for renters

BY ANITA BLANCO

Despite predictions earlier last year that house prices would drop making the rental market more tenant friendly, renters continue to face uncertainty surrounding their leases.

Greens MP and Spokesperson for rental issues, Jenny Leong, wants to end ‘no grounds evictions.’ Under current laws, landlords can kick out renters without providing a reason. Ms Leong is campaigning for critical reforms to ensure this is stopped.

According to Ms Leong, “almost 40% of New South Wales households are now renting,” leaving many families with little stability in the tumultuous market. Tenants can face immediate eviction despite meeting all obligations and paying rent on time.

“They can be asked to move out of the property with just 90 days notice at any time the landlord chooses, again without the landlord having to give any reason,” Ms Leong said.

Notwithstanding the growing number of two-income households, Sydney faces a housing affordability crisis, blocking prospective buyers from the market.

Home ownership rates continue to drop with a startling 87.9% surge in the price of Sydney houses since 2009. There’s little indication that Sydney’s market is slowing down, putting home ownership beyond the reach of many Sydneysiders. According to Ms Leong, “for many people, renting is the only option.

“At the last census 41.2 per cent of families with dependent children in NSW were renting.

“In NSW 20 per cent of people receiving the aged pension now rent.”

A major problem for NSW renters is this risk of eviction without any explanation from the landlord, posing a serious threat to the tenant’s long-term security.

According to Ms Leong, “these ‘no grounds’ evictions are not a common practice around the world.”

Legislation in Australia has been geared towards the interests of investors and landlords, meaning tenants here do not have the same protections their counterparts in North American and Europe.

Meantime, demand for accomodation in Sydney continues to outpace supply. Skyrocketing housing prices and increasing rents encourage small investors to buy up what little housing exists.

In the absence of rental control, tenants face a 25% chance of being evicted within 12 months.

People who do not currently own their home face a double edged sword. On the one hand, as house prices go skyward, prospective buyers are priced out of the market. On the other hand, as rents go up, tenants live in constant fear of eviction.

In the midst of these market conditions, there are increasing calls for NSW rental laws to be reviewed.  According to Ms Leong, “the Tenants Union has been calling for an end to no grounds terminations for years. The Greens have been campaigning for renters’ rights and we will continue to do so,” she said.

As widespread renting continues to be be the norm across Sydney, Ms Leong urges MP’s to modify laws to protect tenants.

“Allowing landlords to throw out tenants with no good reason—with no grounds—comes at a great cost to our community.

“Our communities are compromised because renters are not able to fully establish themselves in their local neighbourhoods.

“Our laws need to reflect the reality of renters in our community and provide stability and security,” she said.