Industry experts believe a push to ban potential renters from bidding higher than advertised prices to secure a rental is doomed to fail.
The NSW Government announced it will make the practice of rent bidding illegal, to improve affordability in a tight market.
Premier Dominic Perrottet says “an advertised rental fee should be just that and we will take action to ensure rental bidding is outlawed.”
But industry insiders say that, because it will only outlaw “solicited rent bidding”, it will not have much impact.
Solicited rent bidding is where an agent asks prospective tenants to increase their rent offer in order to secure a property.
Industry analysts say prospective tenants can still “volunteer” a higher offer for a rental property and because that is an “unsolicited bid” it falls outside of the changes to legislation.
There are already rent bidding bans in other states, with penalties of up to $55,000. In Victoria where the laws are in place, no action has been taken against rent bidding since March 2021.
Many tip the rental market will become tighter after the Federal Government moved to allow more international migration into Australia. HSBC says it could push rents up further over the next decade.