Propertymark welcomes Welsh PRS response but worries about rent controls

Despite welcoming the response of the Welsh government’s plans for the PRS, Propertymark says it is concerned about plans for rent controls, no-fault evictions and energy efficiency regulations.

It says the plans could have a negative impact on landlords in Wales and hit the supply of rental properties.

The Welsh government was responding to the Local Government and Housing Committee’s report on the private rented sector.

The Committee identified several challenges within the PRS in Wales, including a lack of a clear vision from the Welsh government.

It also highlighted the need for improved standards, and limitations in the data held by Rent Smart Wales (RSW) on rents and property conditions.

Balance tenant needs with landlord concerns

Propertymark says: “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.

“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.”

Submit annual rent data

Those recommendations have been 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 the summer.

That could see a requirement for landlords and agents to submit annual rent data and property condition records as part of their RSW registration.

The move would ensure that all 22 local authorities participate in Leasing Scheme Wales.

Avoid unintended consequences

However, Propertymark says further action is needed on important issues to ensure that any reforms work in practice and avoid unintended consequences for the sector.

Although the Welsh government has not endorsed rent controls, it has not ruled them out in its consideration of fair rents and affordability.

Propertymark says it opposes rent controls because they can potentially reduce supply and lower standards.

It says: “Instead, the focus should be on increasing housing supply rather than restricting prices.”

‘Tenants subject to no-fault evictions’

Propertymark says: “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.”

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