Wales: NRLA proposals accepted as Welsh Government rejects rent controls
The long-awaited White Paper on Fair Rents & Adequate Housing has been published, which outlines measures aimed at improving the supply and condition of private rented properties. These are proposals for future legislation or policies that the Welsh Government is seeking views on, and is a key step in shaping how the private rented sector might be improved and regulated in the coming years.
We have been at the forefront of campaigning to ensure that the Welsh Government recognises the vital importance of the private rented sector – both in its provision of long-term homes and to the Welsh economy – and are pleased that many of our recommendations put forward in evidence submitted to the Welsh Government are included in the proposals.
Rent controls rejected
Perhaps the most reassuring aspect of the White Paper is the absence of proposals to introduce rent controls in the Welsh private rented sector. The NRLA has consistently campaigned against rent controls, arguing that such market interventions harm both landlords and tenants by reducing the supply of quality rental accommodation. The Welsh Government’s decision to reject rent controls is a significant victory for us, as it aligns with our view that encouraging investment is key to improving the rental market.
Data collection for evidence-based policy
The White Paper also proposes that landlords provide annual data on market rents and property habitability, a recommendation we support. We believe these measures could be instrumental in creating a more transparent and effective rental market and will help ensure that future government policy is based on robust evidence, allowing for more informed decisions that benefit the sector.
Incentives for Leasing Scheme Wales
Another positive development is the inclusion of our suggestion for a higher rate Land Trans-action Tax rebate for landlords purchasing properties to let via Leasing Scheme Wales. This incentive is designed to encourage investment in the private rented sector, particularly for properties that cater to tenants in urgent need of housing. By providing financial relief to land-lords, the scheme could help increase the supply of rental homes and alleviate the growing supply-demand imbalance in Wales.
Contribute to the consultation
A White Paper sets out a basis for future legislation. The Welsh Government may proceed with legislation that reflects proposals in the White Paper, or it may undertake further consultation and debate. It is therefore vital that landlords’ views are heard, and we will be submitting a detailed and considered response.
Whether you have concerns about specific suggestions in the White Paper or insights into how the proposals might affect you, your input will strengthen our ability to advocate effectively on your behalf. By contributing, you can help influence the future of the private rented sector in Wales, ensuring that policies are fair and workable for landlords and tenants alike.
Please send your views to [email protected] by 29 November 2024.
