Propertymark has good working relationships with Rent Smart Wales (RSW) and is a longstanding stakeholder group member. This is important because it allows for two-way communication between RSW and our members, and we are pleased that many of the concerns raised in our June 2024 submission were echoed in the final report
RSW can, potentially, elevate standards across the PRS in Wales, but only if letting agents are seen as partners, not just subjects of regulation. As we told the Welsh Government, letting agents are often the first line of defence for tenants, landlords, and communities. We will continue to work closely with RSW to improve outcomes and push for reforms that support our members and drive professionalism in the sector.
Letting agents are essential to the solution
We are encouraged that tenant representatives acknowledged how agents, especially those licensed under RSW, tend to be more professional and responsive. But the report highlights that future success hinges on greater support for letting agents, not just regulation of landlords.
We believe reforms should include:
- A corporate licensing model: Allowing multiple staff to access the RSW database would improve operational efficiency for agents.
- Improved recognition of existing professional qualifications: Agents complying with CPD through Propertymark should not be penalised with duplicate training requirements.
- Better support on complex legislation: The Renting Homes (Wales) Act introduced new burdens and RSW must be better resourced to help agents comply and advise clients.
Communicating with professionals
Agents raised concerns over the threatening or combative tone of RSW’s letters, the limited hours of its phone line, and the slow response times. We flagged these issues in our submission, and we are encouraged to see the recommendations for using supportive and accessible language to encourage engagement, and clear, concise, and firm enforcement-related warnings which focus on resolution steps.
Tackling unregistered landlords
Members have told us that landlords who evade registration often fall into two camps. Some deliberately avoid registering to save money, and others are not aware of the necessity to register. While there will inevitably always be some landlords who avoid registration and continue to operate under the radar, a large proportion could have been successfully registered if agents were required to register any landlords they work with.
The evaluation report highlights the need for clearer enforcement guidelines and consistent application across local authorities. RSW should focus on developing better coordination with local authorities and ensuring they have sufficient resources to support enforcement activity.
There must also be improved support and communication directly with landlords, so they understand their responsibilities and receive information in a timely and user-friendly way to encourage engagement and compliance.
Rent Smart Wales
All letting agents who let or manage rental properties in Wales must be suitably trained and licensed to carry out letting or property management work.
Raise the bar higher
Members told us that although overall RSW is a positive force for improving the PRS in Wales, the regime is not robust enough to ensure all landlords and agents stay up to date with legislation and meet all the required standards.
Despite general support for RSW’s training, the failure to recognise other professional CPD qualifications was a significant concern from agents, leading to duplication and added costs. Landlords and agents also want to see more practical, compliance-oriented training, with clearer, simpler resources for complex processes like licensing and renewal.
Proactivity is vital to engage tenants
The evaluation report's focus group with tenant organisations emphasised a major gap in awareness, with most only finding out about RSW when issues arose in their tenancy. Only 22% of tenants said they were aware of communications aimed at them, and among those who did see them, most rated them as neutral or ineffective.
We advocate for public awareness campaigns focusing on the benefits to tenants of choosing a qualified, registered, and compliant agent.
Propertymark is greatly encouraged to see that the independent evaluation has listened to many of our recommendations on improving Rent Smart Wales such as developing a strategic plan to outline its long-term objectives and our suggestion to professionalise the sector via Continuing Professional Development.
However, we hope that landlords being mandated to submit rental data will help improve the Welsh Government’s understanding of the sector and the costs landlords and tenants face, and not simply used to justify any future proposals to control rents across Wales, which have been detrimental in nations such as Scotland. We have written to the Welsh Government highlighting our approval of the report and that we are ready to support RSW improve its decision making and transparency.
