Influencing the private rented sector in Wales
Despite implementing the Renting Homes (Wales) Act just two years ago, and a Senedd election fast approaching, the Welsh Government is continuing to bring forward policy proposals to shape future legislation.
The White Paper on Fair Rents and Adequate Housing is the latest in a series of consultations designed to reform the sector and seeks feedback on how housing standards can be improved, affordability ensured and barriers to renting reduced. Our public affairs manager Eleanor Bateman explains the latest on the consultation.
What is proposed in the White Paper?
The White paper’s proposals reflect Welsh Government’s commitment to ensure that everyone can access adequate housing. It includes measures aimed at improving affordability, habitability, and accessibility in the private rented sector. Critically, the White Paper includes a proposal to require the Welsh Government to produce a housing strategy.
We have highlighted the need for a long-term strategy for the housing sector for some time but are keen to ensure that it is supported by other interventions designed to reduce risks and costs associated with investing.
Improving rent data
The White Paper highlights the need for better local rent data to improve understanding of affordability challenges. It proposes a mandatory requirement for landlords to provide rent data to enable reliable collection of information across regions. The data would not be publicly linked at a property level but would be mapped by postcode or ward to help policymakers understand affordability across Wales.
It is hoped the collection of robust and localised rend data will provide a clearer understanding of market dynamics – rent being paid, rather than rents advertised – and align with broader efforts to ensure decisions are made using reliable evidence.
We have long called for the collection of better data in Wales and support the collection of market rent data in principle. We will, however, require assurances from the Welsh Government that data will be fully anonymised and used to support the delivery of its housing strategy, as outlined in the White Paper. We also believe that collection of rent data must be collected chiefly to support the work of the Valuation Office Agency (VOA) in setting Local Housing Allowance (LHA) rates and enabling better decision-making for rent increase challenges.
Challenging unfair rent increases
Before the Renting Homes (Wales) Act was introduced, tenants could challenge rent increases via the Rent Assessment Committee if their tenancy agreement did not include a rent review clause.
Converted contract holders who had this ability can still apply to the Rent Assessment Committee, but as converted contracts end, fewer will be able to do so. The Welsh Government is considering changes that would enable all tenants to challenge unfair increases.
We believe that rents must be set by the market but support the reintroduction of a right that enables all tenants to challenge an unfair increase.
The VOA should be the adjudicator in the first instance and Rent Officers should determine whether a proposed rent increase is within local market rates. This would strike a balance between fairness for tenants and sustainability for landlords.
Achieving adequate housing standards
In an effort to improve housing standards, the Welsh Government is focusing on seven criteria to determine adequate housing. These include habitability, accessibility, security of tenure and availability of services.
A proposal for landlords to certify that a property meets adequate habitability standards could require the completion of an Annual Property Condition Report (APCR).
The APCR is intended to help address maintenance issues proactively and may involve recording information on property condition and repairs, and whilst it could enable a landlord to demonstrate compliance, we will be urging the Welsh Government to keep any additional administrative requirements to a minimum.
Responding to the consultation
The consultation is open for feedback until 31 January 2025, and we urge you to submit your insights and suggestions. If you would like to contribute to our response, please contact [email protected] by 10 January 2025.
By providing first-hand insights and ideas, you can make sure that Welsh Government considers the practical challenges and unintended consequences of its proposals.
It is more than a chance to share opinions – it is a platform to advocate for fair, sustainable, and effective policies that protect your rights, support tenants and maintain a thriving private rented sector.
