NRLA responds to Local Government and Housing Committee Report on the state of Welsh PRS
The Local Government and Housing Committee published its report on the private rented sector last week, highlighting several critical issues affecting landlords, tenants and the wider housing sector.
The Welsh Government is not required to adopt the Committee’s recommendations, but it takes them seriously as they are grounded in research and public consultation.
Suggestions often contribute to ongoing debates and help to build a consensus on issues. They can therefore influence government policy or alter how existing laws are implemented.
A clear long-term strategy
We submitted written and oral evidence to the Committee as part of its inquiry. Amongst our suggestions was a call for a long-term strategy underpinned by better data to support the sector. It is therefore encouraging to see the Committee make clear that a vision for the private rented sector is needed.
We have long-called for a strategy clarifying the sector’s role in meeting housing needs – in both the short and long-term – to help landlords understand the direction of housing policy, legislation, and government spending. Such a strategy would need to be established on reliable data, generated by a regular Welsh Housing Survey to ensure policy is developed against a solid evidence base.
Impact of ‘no-fault’ evictions
During its inquiry, the Committee heard evidence on the impact of the Section 173 notice for possession or ‘no-fault’ eviction, which can be used to end an occupation contract with six months’ notice.
The Committee was told by the Welsh Government that the six-month notice period provides significant protection for tenants and that an outright ban on ‘no fault’ evictions would contravene human rights legislation.
We also rejected any change to Section 173 on the basis that it could deter investment and further constrain the supply of private rented homes available. Despite this, the Committee has recommended that any contract holder served with a Section 173 notice should not be required to pay rent in the final two months of their contract as ‘compensation’.
Regulatory changes and property standards
A key proposal is the introduction of a Property MOT for assessing a property’s fitness for human habitation as part of the licensing process through Rent Smart Wales. This aims to enhance self-certification, which some feel does not prompt landlords to examine the standard of their properties.
We have previously been supportive of Property MOTs where they could reduce administrative or cost burdens, however the suggestion that a ‘qualified professional’ would need to verify the MOT appears to add an additional layer of unnecessary bureaucracy.
These recommendations can be accepted or rejected by the Welsh Government. With the White Paper on Adequate Housing and Fair Rents expected soon, it remains to be seen which, if any, of the Committee’s suggestions will form part of the consultation, but the Welsh Government is likely to issue a formal response to the Committee’s proposals in the coming months.
This will provide clarity on the Government’s position on each recommendation and indicate the likelihood of any proposals being fully or partially adopted in the future.
The full report can be found here.
