They are also keen to understand opinions on achieving housing adequacy, the different ways in which it could be delivered, and the potential benefits and/or implications of these approaches.
The pressure of the rising cost of living is something the Welsh Government has recognised as a factor why many households are struggling to manage budgets, which includes rental costs for tenants. They have stated they are committed to helping tenants; committed to ensuring that they strive to deliver adequate housing and that access to private renting is fair: with one main aspect being affordability.
Understanding the rental market
There will be several workshops held around Wales with stakeholders to ensure that everyone has the opportunity to give their views. The consultation will close on 15 September with a White Paper due to be issued in the Summer of 2024 which will include feedback on the consultation.
The three areas included in the call for evidence are:
Adequate housing
To understand how things are working now and assess what more needs to be done are key areas to gather evidence on, including what makes a home adequate, and does it meet the needs of the people who live in it, considering it needs to be safe, secure, and affordable.
Affordable housing
Based on the statistics known regarding rental costs and arrears, the Welsh Government state that a lot of people struggle to pay their rent. This is why they need views on how affordable renting is in Wales to provide a more accurate picture.
Rent control measures
Some countries have rules that limit the rent increase a landlord can charge. These are known as rent control measures. Some rent control measures will stop rents increasing above an agreed amount (a cap) or some will freeze rent altogether – stopping any increase. Others will allow only small increases based on certain things. With varying ways in which rent controls are managed and the pros and cons for the PRS, are rent control measures the right thing, or would the supply of enough homes negate the need?
Respond to the open consultation on adequate housing in Wales →
Credible evidence gathering
Propertymark will be surveying member agents who operate in Wales to gather evidence to provide a credible view when we feed into the Green Paper Consultation. Details will be released shortly. Comments and views can also be inputted to our Policy Team at [email protected].
We all want to see a thriving, safe and secure private rented sector in Wales so plans for adequate housing and to improve costs for tenants must take into consideration the huge impact from new legislation in recent years, tax and mortgage rate changes that have squeezed the budgets of many landlords and housing supply that isn’t keeping up with tenant demand – these are all having an impact on rents and the cost of living and renting out property in Wales.
Propertymark does not agree with rent controls and there must be a clear focus on increasing property to rent and buy across Wales so that rents reduce. Without introducing measures that tackle tenant demand and landlord costs, all that will happen is that property standards reduce, landlords leave the sector and rents will rise. This has been evidenced time after time when rent controls have been implemented across Europe and the United States and is currently the case in Scotland. Our recent research has indicated that 95% of surveyed agents in Wales believe that rent controls will reduce supply, 78% of agents reported low levels of awareness amongst landlords on the Welsh Government’s plans and 89% said the proposals would offer no benefit to the sector.
We will continue to engage with the Welsh Government with these warnings and we encourage agents operating in Wales to respond to the Welsh Government’s Green Paper.
