The research also found no evidence of tenancy reforms in NSW in 2010 affecting the supply of rental properties in the state. The same number of rentals were added to the private rental sector after the changes as the previous trend,and ever fewer than expected exited.
In Victoria,slightly fewer rentals were added to the sector,but there was no effect on the number of properties exiting after the state’s tenancy law review in 2015.
The research paper examined the factors that influence landlords’ rental investment decisions by analysing rental bonds data after past rental reforms in NSW and Victoria as well as a survey of property investors.
It did not cover themost recent Victorian rental reforms which allow picture hooks,strengthen the rights of pet owners and mandate fixed heaters. Agents reported some investorsinquired about selling after facing a high vacancy rate earlier in the pandemic and in the wake of a house price boom.
The paper’s lead author Dr Chris Martin,Senior Research Fellow in the City Futures Research Centre at UNSW,said the research debunks the often made claim by the property lobby that improvements to tenancy laws are a disincentive for landlords to invest in rental properties.
“We found there was no evidence of the disinvestment effect. The hard graft of linking millions of bond records gave us a new view into just how often rental properties enter and exit,” Martin said.