Potential negative impact
Areas of concern remain on rent controls, no-fault evictions, and energy efficiency regulations, and Propertymark continues to voice concerns about the potential negative impact on landlords and the supply of rental properties. As the government moves forward, it must carefully balance tenant needs with landlord concerns to ensure the long-term health and stability of the PRS.
Propertymark recommendations
The Committee identified several challenges and areas of focus within the PRS in Wales, including a lack of a clear vision from the Welsh Government, the need for improved standards, and limitations in the data held by Rent Smart Wales (RSW) about rents and property conditions.
Propertymark’s evidence to the inquiry in March 2024 highlighted these issues, and we made several recommendations that were endorsed in the final report and will now be taken forward by the Welsh Government. This will include publishing the outcome of the White Paper consultation on Housing Adequacy, Fair Rents and Affordability by Summer 2025, exploring requirements for landlords and agents to submit annual rent data and property condition records as part of their RSW registration, and ensuring that all 22 local authorities participate in Leasing Scheme Wales.
Nevertheless, further action is needed on important issues to ensure that any reforms work in practice and avoid negative unintended consequences for the sector.
Rent controls
Although the Welsh Government has not explicitly endorsed rent controls, it has not ruled them out in its consideration of fair rents and affordability. Propertymark opposes rent controls due to their potential to reduce supply and lower standards. Instead, the focus should be on increasing housing supply rather than restricting prices. While the government acknowledges high rents are driven by demand and insufficient supply, further clarification is needed on its approach.
Compensation for no-fault evictions
Our concerns about the proposal to allow tenants subject to no-fault evictions to retain the last two months’ rent as compensation are still paramount. The Renting Homes (Wales) Act 2016 already provides tenants with six months' notice for no-fault evictions, offering greater protection than the legislation in England.
Introducing further financial penalties for landlords is counterproductive when they already face rising costs from tax increases, higher mortgage rates, and repair costs, risks restricting the supply of rental homes and driving up rents for tenants. Boosting supply is the most effective way to stabilise rents and prevent further market distortions.
Ministers have stated they will engage with stakeholders on this issue to assess the feasibility of this proposal and publish their conclusions before the end of April 2025.
Propertymark Welsh National Conference
We invited Jayne Bryant MS, Cabinet Secretary for Housing and Local Government to come along to our conference on 6 February to address property agents and we are pleased she’s agreed to provide an update on her department’s work and listen to the concerns of the sector.
Members can attend for free courtesy of our #Thrivein25 campaign, and all our conferences are open to non-members too.
