In the past 12 months alone, the number of people at risk of losing their homes and seeking Legal Aid NSW assistance across the state has risen by 53 per cent increase.

The majority of those people live in regional areas.

They are often asking for help to save their tenancies, or need support to step up out of homelessness, says Legal Aid NSW.

Legal Aid NSW solicitor Sousan Ghecham said the situation in Newcastle is especially dire due to the influx of residents over the COVID-19 pandemic

"Requests for housing assistance are now 33 per cent higher than pre-pandemic levels and continue to rise," she said.

"Housing is one of the largest civil law areas for our clients, and often associated with other issues such as domestic violence, debt and crime.

Newcastle's rental vacancy rate is currently at 1 per cent, significantly lower than the 3 per cent figure that is considered reflective of a 'balanced' market, she said.

"The rental value index has risen 10.2 per cent in the year to June 2022, following a 10.3 per cent increase the year before."

The average tenant is paying $70 more than the same time last year, she said.

Regional NSW's typical average growth in the 10 years prior to COVID had been about 2.5 per cent per year, similar to the pace of inflation.

In Newcastle there was also a significant rise in tenants having to take their landlord to the tribunal for urgent repairs or remediation of mould.

The statistics coincide with the release last month of a Productivity Commission Inquiry into National Housing and Homelessness Agreement.

This reported that not enough people are receiving the support they need to avoid homelessness or to re-enter the housing market.

Reasons include a lack of appropriate housing but also because there are gaps in homelessness services.

"It is important to break the cycle of homelessness by addressing the full range of legal issues that come with it," Ms Ghecham said.

"Safe housing is both a fundamental human right and a vital component of a stable, healthy and productive life."

The Newcastle Legal Aid office is one of six out of 25 in NSW with a specialist housing lawyer addressing legal issues relating to safe, affordable and appropriate housing.

Priority clients include domestic and family violence survivors, prisoners, and those living with mental health issues.

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