Latest data from the Minns Labor Government's Rental Taskforce has revealed solicited rent bidding via listing platforms has been virtually stamped out.
In the NSW Government's first ever Bidding in the NSW Rental Market report, the impact of the Government's strong rental reform agenda is showcased, revealing insights into rent bidding, underbidding, and pricing variations.
The analysis, conducted by NSW Fair Trading and the Department of Customer Service's Data Analytics Centre, found the rent bidding ban is working on listing platforms and shows a rising trend of renters now securing rental properties for less than the advertised price.
Solicited rent bidding occurs when agents, landlords, or platforms invite or pressure prospective tenants to offer more than the advertised rent, increasing housing and cost of living pressure on renters in an already competitive market.
Before December 2022 non-fixed price listings made up 17 per cent of the market.
In a win for renters, the report found systemic law changes introduced by the Minns Labor Government in 2023, which included expanding a ban on solicited rent bidding from only real estate agents to landlords and rental platforms, have led to the widespread removal of illegal rental listing practices, including price ranges and 'offers over' terminology on major listing platforms.
This means more than 99 per cent of advertisements now comply with the rules.
The results linked rental bond data with CoreLogic rental listings and deployed advanced data-matching techniques, informing and validating the ongoing compliance work of the new $8.4 million Rental Taskforce within NSW Fair Trading.
Underbidding - where tenants pay less than the advertised rent - surged from seven per cent to 36 per cent of tenancies between March and August 2024, reflecting a broader market cooling, as listed rents exceeded what the market would bear.
NSW Fair Trading has come down hard on real estate agents caught doing the wrong thing - issuing 145 penalty infringement notices totalling more than $157,000 between May and December last year to those who breached their obligations under the Residential Tenancies Act 2010 (NSW) and associated laws.
Sydney property hotspots including the Randwick, Waverley, and Canada Bay LGA's showed the highest rates of overbidding for a property, while Byron, Woollahra, and Ku-ring-gai demonstrated the highest rates of underbidding.
Historic reforms passed in 2024 are further transforming the rental market by banning no-grounds evictions, limiting rent increases to once per year, making it easier to have pets, as well as improving laws governing fee-free rent payment options, and prohibiting fees for background checks.
The Bidding in the NSW Rental Market reportalongside NSW Fair Trading's Rent Check website provide important market information to support renters and landlords in the NSW rental market.
The Bidding in the NSW Rental Market report can be read on the Rent Bidding in NSW Insights Report webpage.
Information on the NSW Fair Trading Rent Check can be found on this webpage.
Quotes attributable to Minister for Better Regulation and Fair Trading Anoulack Chanthivong:
"This report shows how the Minns Labor Government's rental reforms, coupled with targeted action by NSW Fair Trading, are working to better protect tenants and foster a more transparent and sustainable rental market.
"The Minns Labor Government understands that more people than ever are renting and that they are renting for longer.
"That's why the Government is committed to supporting the rental market, so tenants see it as one that offers security, and quality, while providers view it as one they can invest in with certainty and viability.
"The suite of rental reforms that the Minns Labor Government is implementing will give renters greater stability and security when renting a home, while providing certainty for landlords and agents."
Quotes attributable to NSW Rental Commissioner Trina Jones:
"This report highlights the NSW Government's commitment to data-driven regulation and the importance of effective enforcement when responding to wilful non-compliance in the rental market.
"NSW Fair Trading's regulatory measures have effectively eliminated solicited rent bidding through rental listings, with compliance rates now reaching above 99 percent.
"Importantly, our analysis reveals that broader rent bidding practices, while present during periods of market pressure, have not been a significant driver of rental price inflation."
Quotes attributable to Core Logic's Head of Research Eliza Owen:
"Our research indicates that transparent and fair rental practices contribute significantly to market stability, benefiting both tenants and property owners.
"As we continue to gather and analyse data, it's clear that targeted reforms and effective enforcement are key to fostering a rental environment where all stakeholders can thrive, especially in the context of affordability barriers to home ownership.
"There are signs of demand cooling in the rental market, which has likely helped reduce the practice of rent bidding, but NSW Fair Trading's regulatory measures are a positive step, protecting fairness and transparency in the event of future market upswings."
