Property investors warn against NSW tenancy law changes
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Property investors have cautioned that proposed changes to tenancy laws in New South Wales could risk billions in investment and lead to higher rents.
The Property Investment Council of Australia (PICA) has responded to NSW government plans to reform “no grounds” evictions, arguing such changes could deter investment in rental properties.
Ben Kingsley, National Chair of PICA, said governments should not underestimate how policy changes influence investment decisions.
“Put simply, small business private rental accommodation providers have a choice on whether they invest at all in this sector and, if they do, where they invest in Australia,” Mr Kingsley said.
He pointed to recent experiences in Victoria, where tenancy reforms and higher property taxes reportedly led to 15,600 fewer rental properties in the past 12 months, based on bond registration data.
“Fewer rental properties and higher operating costs equates to higher rents — that’s a fact,” Mr Kingsley said.
The PICA argues that if private investors are discouraged, it could lead to increased pressure on governments to supply rental housing, potentially resulting in higher taxes and charges for all citizens.
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Mr Kingsley criticised attempts to encourage institutional investment in “Build to Rent” schemes through tax concessions, noting that existing private landlords receive no such benefits.
“The irony here is that the existing 2.3 million private rental accommodation providers — who have done the heavy lifting for decades in providing the essential rental accommodation needed — get nothing,” he said.
PICA conducted a snap survey of NSW rental property owners, which indicated strong support for maintaining landlords’ rights to remove tenants from properties they own.
Mr Kingsley emphasised that property investors seek adequate returns, supportive regulations, and less government intervention in the market.
He called on governments to focus on providing social and public housing for the most vulnerable, while allowing the free market to cater for the majority of rental accommodation.
The NSW government has not yet responded to PICA’s concerns about the proposed tenancy law changes.