Blog: The Welsh PRS as we enter 2021
It’s been a year like no other, but that has not stopped the landscape of the Welsh private rented sector (PRS) from changing dramatically. Across 2020, the NRLA has been working hard in the interests of its members and all good landlords across Wales.
Here we take a look at the changes that have taken place and the work the NRLA has done to help shape policy and look forward to what lies ahead.
Deposits
At the end of 2019, the RLA successfully persuaded the Welsh Government to revise its regulations on holding deposits. The rules, which came in as part of Wales’ tenant fees ban in September last year, were changed so landlords would not have to provide prospective tenants with sensitive personal information and gave landlords more time before the rules were introduced. They came into force at the end of February 2020.
Regulations on default fees then came into force at the end of April 2020. The Welsh Government limited the amount chargeable for a default in relation to replacing keys and changing/adding/removing a lock and late rent. For the latter, default payment will accrue if rent is not paid before the end of seven days from the due date, compared to 14 days in England.
Possessions
The Welsh Government then published the Renting Homes (Amendment) Bill, which seeks to reform “no-fault evictions”.
Due to the pandemic, this has taken longer than expected with stage three of the legislative process expected to take place in January 2021.
The Bill should pass its final hurdle before the end of the Senedd term in April.
The NRLA has had several successes as part of the Bill’s journey, persuading the Welsh Government to adopt an amendment allowing landlords more time to retract (and reissue) a Section 173 notice (the replacement for Section 21).
In addition to this, the Committee scrutinising the Bill endorsed exploring our proposals surrounding a housing court, better data collection on the Welsh PRS, and seeing if landlords have the necessary tools (including mandatory possession grounds) to curb anti-social behaviour.
This has also meant a delay for the long-awaited Renting Homes Act.
Passed in 2016, this will mean a significant change to the way the PRS in Wales works – from fitness for human habitation standards to model contracts.
At the time of writing, the Minister for Housing & Local Government, Julie James MS, is targeting Spring 2022 as the implementation date.
The aforementioned amendment Bill is designed to alter this Act before it comes into force and marks the point at which Section 21 will become S173 in Wales.
Coronavirus
In April, the RLA and NLA merged to create the NRLA.
This great stride forward in representing private landlords coincided with a UK-wide lockdown introduced in last March to tackle the coronavirus pandemic.
Since then a great deal of the organisation’s work has been dedicated to ensuring landlords have the necessary safeguards and provisions to continue providing their service of a home.
In Wales, as there were in other British nations, there were possession bans to contend with. But the NRLA succeeded in getting the Welsh Government to eventually introduce exemptions for those served with notices citing anti-social behaviour and domestic violence (now at pre-pandemic lengths).
In addition to this, we assisted councils with leasing schemes where landlords could rent their property through the local authority.
We are very proud that, following a strong NRLA campaign, the Welsh Government introduced the Tenancy Saver Loan. This loan for tenants to cover Covid-related arrears is paid directly to the landlords, has a repayment period of up to five years, and is only subject 1% APR interest.
We also gave evidence to the Senedd’s housing committee detailing the effect of Covid-19 on the PRS and what landlords and tenants need to get through it together.
Consultations
Of course, throughout the year, the usual local government consultations still needed answering.
While we were satisfied with councils deciding against tough enforcement of additional licensing schemes for the initial months of the pandemic, that did not stop Cardiff and Swansea councils from wanting to renew (and, in the latter case, expand) theirs.
We also raised our objections in relation to Conwy, Powys, and Rhondda Cynon Taf’s proposals for an arbitrary empty homes council tax premiums, instead advocating for a more holistic approach which involves incentivising landlords to buy and/or renovate these properties.
The summer also saw a verdict in the Jarvis vs Evans case, which found that Section 8 notices as well as Section 21 notices cannot be issued by unlicensed parties.
Rent Smart Wales
This came only months before Rent Smart Wales – the nation’s so-called single licensing authority for Welsh private landlords – turned five years old in November.
Given registrations and licences are valid for five years, this marks the point when the first landlords and agents will be required to go through the renewal process. The success of this will be monitored by the NRLA throughout 2021. In January, the NRLA will be launching its report on RSW, evaluation its performance in its first half decade of operation.
Election manifesto
Finally, with the pandemic still having a huge impact on all our lives, despite the initial rollout of a vaccine, NRLA Wales released its manifesto for the 2021 Senedd Cymru/Welsh Parliament election.
We are calling for:
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streamlined licensing
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support for landlords and tenants
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improved homes
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the introduction of a new Welsh Housing Survey
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improved justice
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the rejection of rent controls and Right-to-Rent
We’ve been engaging with policymakers throughout the year and will continue to do so to ensure the voice of private landlords is heard when politicians seek to regulate their business.
As you can see, a global pandemic has not brought the Welsh PRS to a standstill and it will continue to undergo reform in 2021 and beyond. We’re calling on all parties to introduce our manifesto calls to make the most of existing frameworks and ensure landlords and tenants get the support they need.
We hope you have a prosperous 2021.
Nadolig Llawen and Blwyddyn Newydd Dda.
