Proposal
Evidence from across the world shows rent controls do not work. They make it harder for renters to find an affordable home, encourage rent rises, see housing conditions deteriorate and can lead to a reduction in the overall number of homes to let as landlords leave the market. We would encourage the Welsh Government to resist any moves to introduce them.
We would also urge the Welsh Government to reject the introduction of the Right-to-Rent scheme, currently operational in England. We believe the scheme, in which tenants must prove their legal right to live in the UK, obstructs the letting process, encourages adversarial relationships and may lead to increased discrimination. It should not be adopted in Wales.
Downloadable Resources
Read our bilingual short briefing
Rejecting Rent Controls and Right-to-Rent - Wales
Rent Controls
Evidence from across the world shows rent controls do not work. They make it harder for renters to find an affordable home, encourage rent rises, are open to abuse, see housing conditions deteriorate and can reduce the number of homes to let as landlords leave the market. With no average annual rent increase of more than 1.7% in 10 years we would encourage the Welsh Government to resist any moves to introduce them.
Case study: Berlin
In Berlin rent controls failed to stop rent levels accelerating. Before the introduction of the rent brake they had been rising by just 1-2% each year as many landlords don’t usually impose an annual rise. After, between 2015 and 2017, rents in central Berlin shot up by almost 10%. This happens because controls encourage rises by the maximum annual limit or they’re substantially increased before the introduction of controls or between tenancies to ensure potential costs can be recovered. Rent increases also come about because of shrinking supply, another consequence of controls.
Benefits
- Rents in Wales are rising, but this is proportionate and, generally, below inflation
- Supply of housing remains steady providing homes for those not ready to buy
- Current system maintains degree of fairness between landlords and avoids costly bureaucracy
Right-to-Rent
We would urge the Welsh Government to resist the introduction of the Right-to-Rent scheme, currently operational in England. We believe the UK Government scheme, in which tenants must prove their legal right to live in the UK, obstructs the letting process, encourages adversarial relationships and may lead to increased discrimination. It should not be adopted in Wales.
Opponents of Right-to-Rent
- Joint Council for the Welfare of Immigrants
- Crisis
- Labour, the Liberal Democrats, and the Green Party
- 44% of landlords reported they are less likely to consider letting to individuals without a British passport as a result of the scheme
Benefits
- Landlords feel less fearful of reprisal for renting to foreign nationals
- Immigrants won’t feel forced to seek housing in the “shadow private rented sector” from unscrupulous and criminal landlords
Campaign Updates
- 26 March 2021 - NRLA meets Welsh Liberal Democrat leader, Jane Dodds, and Housing spokesperson, Cllr Jackie Charlton
- 24 March 2021 - NRLA meets Mabon ap Gwynfor, Plaid Cymru Senedd candidate for Dwyfor Meirionydd
- 23 March 2021 - NRLA meets Rhys ab Owen, Plaid Cymru Senedd candidate for Cardiff West and South Wales Central
- 11 February 2021 - NRLA meets Cllr James Evans, Conservative Senedd candidate for Brecon & Radnorshire
- 11 February 2021 - NRLA meets with Shadow Housing Minister, Laura Jones MS (Con, South Wales East).
- 27 January 2021 - NRLA meets with Senedd committee chair, John Griffiths MS (Lab, Newport East).
- 19 January 2021 - NRLA meets with Hefin David MS (Lab, Caerphilly).
- 10 December 2020 - NRLA release 2021 manifesto.
Right to Rent fines to hit £20,000 from next week
Right to rent fines to hit £20,000
Landlords could be hit with fines of up to £20,000 for failure to ensure tenants and lodgers have the right to rent in the UK. For landlords who take on illegal immigrants, the fines will increase from £80 per lodger and £1,000 per occupier for a first breach to up to £5,000 per lodger and £10,000 per occupier. Repeat breaches will be up to £10,000 per lodger and £20,000 per occupier, up from £500 and £3,000 respectively.
Call of the month: End of Covid-adjusted Right to Rent checks
This month we were able to advise one of our members about the end of the Covid-adjusted right-to-rent check. Our member had signed a tenant up using a Covid-adjusted check at the start of September. They wanted to make sure this was still legally compliant, as they had heard something about the checks coming to an end.
Blog: Your right to rent update
In welcome news for landlords, the Government has made it easier to perform right to rent checks from April this year. Under the new rules for right to rent, landlords now have a range of options for performing a right to rent check on prospective tenants, including using digital verification technology that can be performed remotely.
NRLA urges Welsh Government to reject rent controls in new shadow white paper
Today we launch our Shadow Wales White Paper, which calls on the Welsh Government to reject rent controls and sets out what can be done to create a fairer, more inclusive Welsh private rented sector.
