New report shows rental situation stabilising
Reforms have worked in giving investors more confidence and renters feeling less compromised over tenancy rights.
THE NSW Government is lauding significant improvements to the rental market on the back of initiatives undertaken a year ago.
In 2025, the Minns Government banned no-grounds evictions and delivered greater protections for renters.
NSW Fair Trading’s first Rental Reforms Impact Analysis shows that the number of rental properties in NSW is steady, rebutting claims that investors would be deterred from investing in NSW.
As of March 2026, there is no evidence of a contraction in the rental market, with more bond lodgements (499,000) than refunds (466,000) since October 2024.
And it showed there is sustained investor confidence in the market, with total new loan commitments increasing by 15.1 per cent and investor lending rising by 23.4 per cent between September 2024 and December 2025.
The Impact Analysis also recorded a slight decline in both new tenancies and tenancies ending, suggesting that renters are enjoying greater security and staying in their homes for longer.
Long-term rental tenures are increasing, with tenancies of five years or more rising by five per cent to 20.4 per cent of the market share.
The government suggests the rental reforms are working to deliver more certainty for renters without compromising the rental market.
Rental availability has remained stable, investor activity has continued and longer tenancy durations suggest increased stability for renters.
The government’s 2025 reforms included:
- Banning no-grounds evictions;
- Limiting rent increases to once a year;
- Ensuring renters have fee-free ways to pay rent;
- Banning fees for background checks; and
- Introducing easier pet approvals.
Minister for better regulation and fair trading Anoulack Chanthivong said the government is delivering on its promise to make renting fairer.
“This data shows that our rental reforms are working for renters while maintaining investor activity in the NSW rental market,” he said.
“We’ve changed the market in a way that protects renters and gives confidence to landlords to keep investing in NSW.
“Because these laws strike the right balance to create system that works for everyone – giving renters security, which leads to certainty for landlords who are looking for long-term tenants.”
NSW rental commissioner Trina Jones said the findings show the rental market has adjusted to our reforms without significant disruption.
“Investor confidence was shown to be strong a year out from reforms and tenants are feeling more secure to stay in their homes for longer,” Jones said.
“We’ll continue to monitor market indicators and compliance with the new laws to strengthen the rental system and support our commitment to improving renting in NSW.”
