Tenants the winners in rent bidding crackdown

NSW renters are seeing relief in a cooling rental market, with a government crackdown on solicited rent bidding leading to more tenants securing properties below advertised prices.

A report by NSW Fair Trading and the Department of Customer Service’s Data Analytics Centre found that underbidding – where tenants pay less than the listed rent – has surged from 7 per cent to 36 per cent of tenancies between March and August 2024.

The analysis, which linked rental bond data with CoreLogic rental listings, indicates that new regulations banning solicited rent bidding have significantly reduced illegal listing practices.

“NSW Fair Trading’s regulatory measures have effectively eliminated solicited rent bidding through rental listings, with compliance rates now reaching above 99 percent,” said NSW Rental Commissioner Trina Jones.

Before the reforms, which expanded the ban on rent bidding from real estate agents to include landlords and rental platforms, 17 per cent of rental listings featured non-fixed pricing. The latest data shows this practice has been virtually stamped out.

Broader shifts

The findings come amid broader shifts in Sydney’s rental market, with government enforcement measures targeting non-compliant real estate agents. NSW Fair Trading has issued 145 penalty infringement notices, totaling more than $157,000 in fines, for breaches of rental laws.

Sydney’s rental hotspots have shown varying trends, with Randwick, Waverley and Canada Bay recording the highest rates of overbidding, while areas such as Byron, Woollahra and Ku-ring-gai have seen the most cases of underbidding.

The report also highlights historic reforms introduced in 2024, including the ban on no-grounds evictions, a limit on rent increases to once per year, and improved rights for tenants seeking to keep pets. Other changes prohibit fees for background checks and ensure fee-free rent payment options.

CoreLogic’s Head of Research, Eliza Owen, noted that “transparent and fair rental practices contribute significantly to market stability, benefiting both tenants and property owners.” She added, “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.”

For renters, the reforms offer increased security in a market where affordability remains a pressing issue. As the market cools, the impact of these regulatory changes could provide long-term relief for tenants facing rising cost-of-living pressures.

The full Bidding in the NSW Rental Market report can be accessed here.