Plaid Cymru call for rent freeze voted down by Senedd
Proposals to freeze rents in Wales have been voted down by members of the Senedd, after the NRLA warned the move could backfire, forcing landlords to sell up.
The vote followed an emergency debate tabled by Plaid Cymru on the question of whether Wales should put a rent freeze into effect in the Welsh private rented sector, in light of the Scottish Government’s move to freeze most rents until March 2023.
The NRLA provided a briefing cautioning against the use of a rent freeze earlier in the week to Senedd Members. In it we warned that any freeze would be detrimental to the market, increasing costs for both tenants and landlords.
During the debate, Janet Finch-Saunders MS highlighted that private landlords were leaving the market, citing the NRLA’s Landlord Confidence Index, which shows that landlords in Wales had lower levels of confidence compared with all of England’s regions.
NRLA survey data also suggests that 26% of landlords in Wales have sold properties over the last 12 months, and that 49% are planning to sell in the next 12 months.
In our briefing to MS’, the NRLA also highlighted that, following the Scottish Government’s rent freeze, the nation’s only stock market-listed housebuilder announced it had halted new investment in the private rented sector until “normal market conditions resume”.
The Welsh Government said: “A freeze could prompt landlords to stop letting homes or hike rents before they are frozen”.
Responding to queries about action the Welsh Government is taking to address issues in the private rented sector, Climate Change Minister Julie James MS said the Government had increased funding to local authorities to help tenants with their bills. Adding that instead of freezing all rents - which could have "very serious unintended consequences" – the Welsh Government wants to "target the support at the people who are most vulnerable and make sure they stay in their homes".
James added that "We [the Welsh Government] don't want to drive landlords away from the sector". The Welsh Government has promised however to publish proposals on making rent more affordable in a future White Paper.
With the question of whether rent controls will be introduced across the UK’s private rented sector still up for discussion, the NRLA will continue to make the case against rent controls on behalf of its members.
