We outlined some of the key challenges the sector is experiencing including the challenge of the implementation of the Renting Homes (Wales) Act 2016, energy efficiency and taxation measures and warned that the introduction of rent controls would likely signal more landlords exiting the sector.
To counter these supply issues, get more landlords in the market and effectively reduce rents, Propertymark recommends that landlords should be exempt from the 4% Land Transaction Tax Levy on the purchase of additional homes provided they were used for long-term residential let, and the provision of financial support through grants and loans should be provided to support landlords upgrading the energy efficiency of their properties.
Improving standards and affordability
We firmly made the point that rent controls will not improve affordability but could make rents rise as more landlords exit the market and reduce supply. Far more practical solutions would be to build greater levels of social housing, increase supply in the PRS by reducing Land Transaction Tax on landlords’ additional homes by 1% and for the Welsh Government to lobby the UK Government to increase Local Housing Allowance rates.
The leading role that local authorities in Wales have in enforcing standards is something that we recognise, however, they need to be adequately funded to ensure their enforcement activity is rigorous enough. The Renting Homes (Wales) Act 2016 also needs time to bed in to allow landlords to understand the legislation and to be fully compliant.
Recognising that the demographics of the PRS are rapidly changing, with more older people and families accessing the sector, we believe that the relationship between local authorities and private landlords must change to a more cooperative relationship. Landlords have a leading role to play in supporting local authorities to tackle the housing crisis but to also house vulnerable groups like older and disabled people. This can be achieved by greater local authority support and access to funding like the Disabled Facility Grant.
Call for a Welsh Housing Survey
With the introduction of the Act and a single legal framework for housing in Wales, this would be a prime opportunity to improve research and intelligence on the PRS. Decisions are often made using anecdotal evidence, which is why Propertymark used the opportunity of the consultation to renew our call for a Welsh Housing Survey. It could be based on the established English Housing Survey to compare both nations' data sets and could allow policy makers a greater understanding of the number of tenants who end a PRS contract to satisfaction levels in social housing.
