No Grounds Evictions - Protecting Against “Renovictions” by Reinstating Evidence for Renovations

Decision Maker: Council

Decision status: Recommendations Determined

Decision:

Moved by Councillor Miller, seconded by Councillor Ellsmore –

It is resolved that:

(A)       Council note:

(i)         as of 19 May 2025, landlords wanting to evict a tenant for significant repairs or renovations were required to provide both a written statement and a choice of one of 5 pieces of evidence, such as a quote from a licensed builder or tradesperson, or development consent, or receipts from the purchase of building materials. This was intended to ensure that landlords seeking to recover a property for significant renovation or repairs were genuine and not simply using a tactic to remove tenants;

(ii)        termination grounds for renovations or repairs are only meant to be used where the work is so significant a person can’t live there while they happen. In such a scenario, the evidence requirement was made up of documents that would be created if the work was really happening, with minor alterations on some to provide necessary detail and clarity;

(iii)       on 20 June 2025, the NSW government removed the additional evidence requirement with the Residential Tenancies Amendment (Termination Notice for Significant Renovations or Repairs) Regulation 2025 only one month after implementing the reform;

(iv)       this was done without further consultation, less than 5 weeks after implementing the important reforms to evictions. These reforms followed a long and rigorous consultation process, including the input of tens of thousands of people and organisations, including the signatories to this statement. In the short time frame, there could not have been sufficient evidence gathered to support a need for these changes to occur;

(v)        in debate on the Residential Tenancies Amendment Bill 2024, which enabled the ban on no grounds evictions, on 22 October 2024, the Greens Member for Newtown Jenny Leong MP moved amendments that sought to embed evidence requirements into the legislation, rather than the regulations;

(vi)       on 25 June 2025, the Member for Sydney, Alex Greenwich asked questions of the Minister for Better Regulation and Fair Trading about the proposed changes including why the changes were made, who was consulted and who asked for the changes to be made, but the answers don’t explain why the regulations have been changed so soon after they were implemented;

(vii)      on 6 August 2025, the Member for Willoughby, Tim James, Shadow Minister for Fair Trading, Work Health and Safety and Building, moved a disallowance motion against the changed regulation, it didn’t pass. Residential Tenancies Amendment (Termination Notice For Significant Renovations Or Repairs) Regulation 2025;

(viii)    landlords will now only be required to provide a written statement as evidence of undertaking significant renovation or repairs that would prevent a tenant from continuing to live at the property while the works were undertaken;

(ix)       without the full evidence requirements for this prescribed ground for termination there is a real risk that the NSW Government's commitment to end no grounds evictions and ensure renters have the rights and security they need will be undermined; (ix) the Tenants Union of NSW explain that prior to this recent change there had been a concern that the prescribed ground to end a tenancy due to significant repairs and renovations could be easily exploited, given the international experience in Canada, where such weak provisions are commonly referred to as “renovictions”. The re-letting exclusion period had already been reduced from covering 4 weeks of work needed on a property, to only 4 weeks from the renter moving out - regardless of how long the work would actually take. The Tenants’ Union of NSW called for strong evidence requirements to ensure that landlords would need to support their claim with evidence to show legitimacy to the grounds. Weakening the evidence requirements increases the risk of exploitation;

(x)        appropriate evidence requirements, bans on reletting for a period and significant penalties are all required to work in tandem to ensure only genuine termination grounds are being used in NSW. The NSW Government must also commit to monitoring complaints and thoroughly investigating any potential misuse of these termination grounds; and

(xi)       these types of changes made behind closed doors only undermine renters' trust and confidence that the NSW Government is committed to improving the fairness of the rental system. The NSW Government needs to show that it is listening to renters’ voices when developing and amending rental laws;

(B)       the City of Sydney join organisations opposing these changes by signing the Joint statement: Reinstate evidence requirements for evictions due to repairs or renovations; and

(C)       the Lord Mayor be requested to write to the NSW Minister for Fair Trading, calling on the NSW Government to:

(i)         amend the Residential Tenancies Regulation to reinstate all the evidence requirements for landlords seeking to issue a notice of termination due to significant repairs or renovations;

(ii)        monitor complaints and investigate any misuse of the significant repair or renovations termination grounds; and

(iii)       commit to following a transparent consultative process for any future changes to rental laws in NSW.

Carried unanimously.

X113761

Report author: Erin Cashman

Publication date: 25/08/2025

Date of decision: 25/08/2025

Decided at meeting: 25/08/2025 - Council

Accompanying Documents: