Tenants whose homes are repossessed because their landlord defaulted on loan repayments will have 30 days rent-free to find a new place to live under proposed changes to tenancy laws.

The State Government will move to amend the Residential Tenancy Act this week, so that tenants will be given a month's notice to leave rather than being told to vacate their home as soon as a repossession order is granted.

To help with relocation, tenants will pay no rent until they find new accommodation and will have all advance rent payments refunded immediately.

The NSW Fair Trading Minister, Virginia Judge, said tenants would also get their rental bonds back quicker because those seeking to repossess a home would be allowed to authorise the payment, rather than just landlords as is the case now.

"I am also urging banks to … act swiftly to release their bonds so they can secure new accommodation," Ms Judge said.

The Supreme Court issued an average of more than 300 repossession writs a month between January and April .

The number dropped to 162 last December due, in part, to falls in interest rates.