Renters in New South Wales have had a huge win after the government announced a ban on no-grounds evictions. Premier Chris Minns revealed that legislation would be introduced later this year to give tenants more peace of mind and ensure they wouldn't suddenly be homeless without a proper reason.

The change will affect renters on both fixed-term and periodic lease agreements. Leo Patterson Ross, CEO of the NSW Tenants'​ Union, told Yahoo Finance that no-grounds evictions can have a profound impact on a person's mental health.

"People talk about the anxiety, the worry that being removed from their home brings them but it's also about often being removed from their community," he said.

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"Their kids might have to be changing schools, they're losing friends. They're no longer part of the same social groups.

"All of this has this very damaging pressure on the person."

Not only is it mentally taxing, but it can take a toll on your finances.

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A woman in her 70s told the Union how she was served a no-grounds eviction not once, not twice, but four times in the last 10 years.

"It depletes my small reserve of savings as it costs money to move. It has just happened again and I am at a loss at what to do," she said.

At the moment, a tenant can receive a no-grounds eviction notice from their landlord or property manager that they need to vacate the property between 30 to 60 days before the fixed-term lease expires. If the tenant is on a month-to-month, it's a minimum of 90 days' notice.

Around 28,000 no-grounds evictions are actioned every year in NSW alone, according to consumer group CHOICE.

How would the reforms in NSW work?

Under the proposed reforms, homeowners would need valid reasons to end tenancies for both periodic and fixed-term leases.

These would include existing rules for breach of lease, damage to property or non-payment of rent.

Other eviction reasons would include a property being sold or offered for sale with vacant possession, a property requiring significant repairs, renovations or demolition, or a property no longer being used as a rental.

If landlords don't provide a proper reason then they could be fined.

A homeowner would not be able to re-list a property for at least four weeks should the eviction be sought on renovation or repair grounds.