This decision marks a notable win, but Propertymark remains vigilant. As further changes to housing policy in Wales are debated, we will continue to advocate for effective, evidence-based solutions that support the needs of all participants in the rental market. We remain committed to working with Welsh Ministers to ensure policies do not place disproportionate burdens on agents and landlords who already operate in a complex and evolving regulatory landscape.
What was proposed?
Following a review of the PRS in Wales, the Senedd’s Local Government and Housing Committee suggested that landlords who sought possession of their properties under Section 173 of the Renting Homes (Wales) Act 2016 should provide tenants with a financial payment — two months’ rent — as “compensation” upon serving notice.
Propertymark issued a warning to Ministers that such a policy would significantly distort landlord-tenant relations, deter investment in the sector, and undermine the balanced framework intended by the legislation.
A well-rounded policy decision
The Welsh Government responded to the Committee, stating that while it supports tenants’ rights and security, it could not accept a measure that would fundamentally shift the nature of possession proceedings. Ministers recognised that such a policy might have unintended consequences, including a reduction in available rental stock and increased rental costs as landlords exit the sector or adjust rents to mitigate risk.
This stance echoes many of the arguments raised in Propertymark’s evidence and campaign materials, which stress that any reform must preserve fairness and viability for both landlords and tenants.
Member voices shaping outcomes
Propertymark has been at the forefront of engagement on the Renting Homes (Wales) Act and its implementation, representing our members. In our official response to the Senedd report, we welcomed aspects of the review that reflected our recommendations, such as improved data collection and greater clarity in the law.
However, we raised serious concerns from agents about the threat to landlords’ right to regain possession of their property without disproportionate penalties. This decision by the Welsh Government validates that position and underscores the importance of industry advocacy in influencing housing policy.
Propertymark campaigned against this proposal from the start, sharing our concerns directly with the Cabinet Secretary and participating in discussions with Welsh Government officials.
The proposal gave no regard for the ongoing costs landlords have in sustaining tenancies, including mortgage and insurance costs. It was also not a practical solution for tenants, especially for those who are in receipt of benefits and pay their rent through managed payments.
The Welsh PRS has seen significant legislative changes in recent years, and we are keen to continue our work with the Welsh Government to ensure agents, tenants, and landlords have time to understand and apply the existing rules before further reforms are looked at.
