Residential tenancy law reforms: No grounds evictions
In July 2023, the NSW Government released a consultation paper on improving rental laws, including ending no grounds evictions. The government is expected to introduce a broad package of rental law reforms later in 2024.
In February 2024, Greens MP Jenny Leong introduced the Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024. On 16 May 2024, the Legislative Assembly referred the Bill to a select committee for report by 20 September 2024.
The purpose of this paper is to provide an overview of this controversial issue to inform parliamentary debate. It summarises the current state of the rental sector in NSW and the current law, as well as the debate about no grounds evictions and recent proposals for law reform in NSW. Finally, reforms in other states and territories and countries are discussed.
Lenny Roth, BCom, LLB
Christine Lamerton, BA (Lib Sci), AALIA
Parliamentary Research Service
Research Paper 5, 2024
Key Points
- Over 2 million people live in rental homes in NSW. Over 90% of rental properties are owned by individual investors who own between 1 and 3 properties.
- In NSW, a landlord can end a tenancy without giving a reason if they give the tenant the required amount of notice (a ‘no grounds’ eviction).
- The arguments for banning no grounds evictions include the financial and social costs of evictions for tenants, and that the threat of evictions makes tenants less willing to assert their tenancy rights, including for repairs.
- The arguments against banning no grounds evictions include that this interferes with freedom of contract principles, and that a ban will discourage property investment, reducing the supply of rental properties.
- In July 2023, the NSW Government consulted on rental law reforms including ending no grounds evictions. Legislation is expected later in 2024.
- In February 2024, Greens MP Jenny Leong introduced the Residential Tenancies Amendment (Prohibiting No Grounds Evictions) Bill 2024. The Bill has been referred to a committee for report by 20 September 2024.
- In recent years, several other states and territories have partially or fully banned no grounds evictions, including Victoria, Queensland, the ACT, and South Australia. There is limited evidence on the impact of the reforms.
- Scotland banned no grounds evictions in 2016. Research on the impact of the 2016 reforms has not yet been completed.
- In 2023, the UK Government introduced a Bill to ban no grounds evictions in England. The Bill passed through the House of Commons in April 2024 but had not passed the House of Lords prior to the dissolution of parliament on 30 May 2024.
- New Zealand banned no grounds evictions in 2021. On 15 May 2024, the new National Party government introduced a Bill to reinstate no grounds evictions. As at 31 May 2024, the Bill had not been debated.
Published: 4 June 2024