WA housing crisis: Labor set to ban no-grounds rental terminations at May 7 state Budget

WA Landlords will no longer be able to kick renters out without a valid reason, under new laws proposed by the Cook Government. The Sunday Times understands that despite resisting the change for years, Labor has all but agreed to ban no-grounds terminations for renters in WA, with an announcement to be made at the May 7 state Budget. It’s understood the tight WA rental market, which currently sees less than 2000 properties available in Greater Perth and skyrocketing weekly median rent prices of $740 a week, coupled with a cost-of-living crisis, has forced the Cook Government’s hand to introduce more safeguards for renters. This is despite fears within the housing industry that the move could turn investors away from the property market, meaning even less properties available for renters. Anglicare WA boss Mark Glasson told The Sunday Times, that stopping the ability of landlords to evict tenants at the end of their leases for no valid reasons was an overdue measure. “Ending no-grounds terminations would be one of the most significant reforms the State Government could enact to protect more than 700,000 West Australian renters,” Mr Glasson said. “It would also bring us in line with the rest of the country, where just about every other state has repealed no-grounds terminations.” In WA, renters can be evicted if they breach conditions of their lease, such as not paying rent or damaging property — although property owners need a court order to take possession of their property if a tenant refuses to address issues and refuses to leave. But landlords can, at the end of a lease, also get rid of a tenant for no specific reason under what’s known as no grounds terminations. WA and the Northern Territory are the only jurisdictions that currently allow no grounds terminations. Just last week, the Cook Government announced it had made changes to the process of bonds being returned to tenants, allowing renters to begin the process of getting their bond back, rather than being at the mercy of landlords. As revealed by Treasurer Rita Saffioti in a recent interview with The Sunday Times, the Middle East conflict has caused the State Government to go back and revisit its cost-of-living strategies for the May 7 state Budget, wary of rising living costs for every day West Australians. The Sunday Times understands the government believes banning no grounds evictions would be an important cost-of-living measure that would give renters, many of whom are already doing it tough financially, more surety over having a roof over their heads. “As house prices rise further out of reach for many people in this state, more and more people are renting, particularly younger people, older women, and single parents, and the number of people trying to enter the market will only continue to grow,” Mr Glasson said. “While the Residential Tenancy Act reforms of last year increased protections for renters, the poor dynamic remains significantly unbalanced in favour of landlords and property managers. “We constantly hear from renters who are afraid to even ask questions about their rights - who quietly put up with bathroom mould or broken air-conditioning - out of fear it will lead to their lease not being renewed.” But no grounds terminations are not likely to impress REIWA, which has expressed concerns in the past about scaring off investors through the new reforms. REIWA boss Suzanne Brown in February this year expressed her concerns over banning no grounds terminations in WA. “We can’t afford to lose any rental properties,” Ms Brown said. “Removing no grounds terminations risks a return to crisis conditions were experienced only a couple of years ago.” The State Government said on Saturday housing was a key issue this budget. “Housing will be a key priority of this year’s budget, and we’re looking at a range of measures to build more homes, unlock and deliver more land supply, and help first home buyers,” a State Government spokesperson said. “We’ll have a lot more to say on those initiatives closer to the Budget.”