A year after the NSW Government banned no-grounds evictions, new figures show investor activity and confidence in the New South Wales rental market remain strong, with no sign the reforms have driven landlords out of the sector.
NSW Fair Trading’s first Rental Reforms Impact Analysis since the laws took effect found the number of rental properties across the state has stayed steady, addressing claims that investors would be deterred from the market.
As of March 2026, there was no evidence of a contraction in the rental market. About 499,000 bond lodgements have been recorded since October 2024, compared with about 466,000 refunds. The total number of rental bonds held across NSW grew steadily by 1.1 per cent over the past 12 months, reaching almost one million active tenancies by March 2026. Fluctuations in lodgements, refunds, lending volumes and reported terminations remained consistent with established seasonal patterns.
Investor confidence has also held up. Total new loan commitments rose 15.1 per cent and investor lending climbed 23.4 per cent between September 2024 and December 2025.
“One year on, it’s clear that the Minns Labor Government is delivering on its promise to make renting fairer,” said Minister for Better Regulation and Fair Trading Anoulack Chanthivong.
“This data shows that our game-changing rental reforms are working for renters while maintaining investor activity in the NSW rental market.”
The analysis recorded a slight decline in both new tenancies and tenancies ending, suggesting renters are staying in their homes for longer. Tenancies of five years or more rose 5 per cent to make up 20.4 per cent of the market as of March 2026, matching the previously dominant one-to-two-year tenure group.
“We’ve changed the market in a way that protects renters and gives confidence to landlords to keep investing in NSW,” Mr Chanthivong said.
“Because these laws strike the right balance to create system that works for everyone, giving renters security, which leads to certainty for landlords who are looking for long-term tenants.”
Since the reforms passed, the government has banned no-grounds evictions, limited rent increases to once a year, ensured renters have fee-free ways to pay rent, banned fees for background checks and introduced easier pet approvals. It has also invested $6.6 million to build Smart Rental Bonds, a system designed to help renters save money when moving home. Parramatta, the Central Coast and Penrith will lead the first phase of its rollout in August.
NSW Rental Commissioner Trina Jones said the findings showed the market had settled into the new rules without major disruption.
“These findings show the rental market has adjusted to our reforms without significant disruption,” Ms Jones said.
“Investor confidence was shown to be strong a year out from reforms, and tenants are feeling more secure to stay in their homes for longer.”
“We’ll continue to monitor market indicators and compliance with the new laws to strengthen the rental system and support our commitment to improving renting in NSW.”
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