Rent Bidding Ban Cause More People Breaching The Rule
Rent bidding ban backfires
The NSW Government’s ban on agents from “rent bidding” has gone wrong, with more people offering above the asking rent.
According to the Real Estate Institute of NSW (REINSW), the rent bidding ban has had a “counterproductive impact”.
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REINSW Board Member and Senior Property Manager at Leah Jay, Michelle McLean, said the most significant increase in rent bidding since the ban occurred at the lower end of the market.
“We are seeing tenants competing for properties at the cheaper end of the rental market becoming increasingly desperate in their attempts to secure a home in an environment of such tight vacancy,” Ms McLean said.
Ms MacLean said the situation would remain perilous except for the government getting serious about solving the housing shortage for people in “lower socio-economic demographic.”
REINSW CEO Tim McKibbin said banning agents from asking above the advertised rent had no impact.
“When politics is prioritised over policies, ceremonial moves like banning rent bidding for agents too often end up backfiring on consumers,” Mr McKibbin said.
“By the end of the week, we should have some clarity about which party will lead the state for the next few years. We implore whichever party that might be to dispense with short-sighted, ill-conceived, vote-attracting policies and work with industry on a real and tangible suite of measures to address the housing crisis.”
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