Government at fault for the pain tenants are feeling

THE Real Estate Institute of NSW believes the NSW Government is to blame for the significant decline in loans to investors, and the subsequent pain being experienced by tenants.

In handing down another interest rate rise for struggling mortgage holders, the Reserve Bank noted that while “the increase in interest rates over 2026 has weighed on demand from all categories of borrowers, the decline in new lending has been most pronounced for investors".

Home loans are down 27 per cent, largely driven by a drop-off in loans to investors, according to the Reserve Bank.

§ REINSW blames government reforms for rental shortage

It’s a trend playing out with significant consequences in NSW, REINSW chief executive Tim McKibbin said.

He added the exodus of investors and the resultant shortage of rental accommodation in the state is largely the fault of the NSW Government and its failure to understand the realities of the rental market.

“Every anti-landlord reform the NSW Government has introduced has had an adverse impact on tenants in the form of fewer homes to rent and higher rents as a consequence,” McKibbin said.

“Landlords have heard the government’s message loud and clear. That message is to get out of the market, irrespective of the impact this has on tenants.

“As investors increasingly choose to sell their homes, land bank their properties or choose the short-term accommodation market, tenants are left with fewer choices."

§ McKibbin challenges claims tenants can buy investor homes

McKibbin said the NSW Government has demonstrated time and again that it is completely naive to the operation of the real estate market.

“In attempting to justify its anti-landlord agenda, one of the most cold-hearted and insulting claims from government is that every time an investor sells a property, a tenant is able to buy it," he added.

“How can a typical tenant save enough for a deposit to buy a home when so much of their income is spent on rent, given the chronic shortage of supply?

“Even if a first home buyer purchases a property sold by an investor, what happens to the individual tenant living in that home? Why are these tenants so routinely forgotten?”