Evidence from across the world shows rent controls do not work. They make it harder for renters to find an affordable home, encourage rent rises, see housing conditions deteriorate and can lead to a reduction in the overall number of homes to let as landlords leave the market. We would encourage the Welsh Government to resist any moves to introduce them.
We would also urge the Welsh Government to reject the introduction of the Right-to-Rent scheme, currently operational in England. We believe the scheme, in which tenants must prove their legal right to live in the UK, obstructs the letting process, encourages adversarial relationships and may lead to increased discrimination. It should not be adopted in Wales.
Read our bilingual short briefing
Rejecting Rent Controls and Right-to-Rent - Wales
Last updated: 11/03/2021 at 13:32 - 610.35 KB
Evidence from across the world shows rent controls do not work. They make it harder for renters to find an affordable home, encourage rent rises, are open to abuse, see housing conditions deteriorate and can reduce the number of homes to let as landlords leave the market. With no average annual rent increase of more than 1.7% in 10 years we would encourage the Welsh Government to resist any moves to introduce them.
Case study: Berlin
In Berlin rent controls failed to stop rent levels accelerating. Before the introduction of the rent brake they had been rising by just 1-2% each year as many landlords don’t usually impose an annual rise. After, between 2015 and 2017, rents in central Berlin shot up by almost 10%. This happens because controls encourage rises by the maximum annual limit or they’re substantially increased before the introduction of controls or between tenancies to ensure potential costs can be recovered. Rent increases also come about because of shrinking supply, another consequence of controls.
- Rents in Wales are rising, but this is proportionate and, generally, below inflation
- Supply of housing remains steady providing homes for those not ready to buy
- Current system maintains degree of fairness between landlords and avoids costly bureaucracy
We would urge the Welsh Government to resist the introduction of the Right-to-Rent scheme, currently operational in England. We believe the UK Government scheme, in which tenants must prove their legal right to live in the UK, obstructs the letting process, encourages adversarial relationships and may lead to increased discrimination. It should not be adopted in Wales.
Opponents of Right-to-Rent
- Joint Council for the Welfare of Immigrants
- Labour, the Liberal Democrats, and the Green Party
- 44% of landlords reported they are less likely to consider letting to individuals without a British passport as a result of the scheme
- Landlords feel less fearful of reprisal for renting to foreign nationals
- Immigrants won’t feel forced to seek housing in the “shadow private rented sector” from unscrupulous and criminal landlords
- 11 February 2021 - NRLA meets with Shadow Housing Minister, Laura Jones MS (Con, South Wales East).
- 27 January 2021 - NRLA meets with Senedd committee chair, John Griffiths MS (Lab, Newport East).
- 19 January 2021 - NRLA meets with Hefin David MS (Lab, Caerphilly).
- 10 December 2020 - NRLA release 2021 manifesto. Read more here.
Ahead of the 31 December 2020, we wanted to remind members that Government guidance states that private landlords will need to carry out Right to Rent checks in the same way they do at present, until June 2021.
New guidance on Right to Rent has been published this week. The legislative changes enable landlords and letting agents to use a new Home Office online checking service, available from 25 November, to undertake right to rent checks for non-UK nationals.
The Immigration Minister, Chris Philip MP, has published a written statement on the Right to Rent scheme, and has laid before parliament the regulations to launch an online Right to Rent checking service.
Proposals by the Mayor of London for rent controls in the capital would be a disaster for tenants. As Sadiq Khan once again seeks the powers to introduce them, the National Residential Landlords Association is pointing to a report published by The Treasury in 2010 under the last Labour Government, of which the Mayor was a member.
New guidance from the government on its Right to Rent scheme would see landlords breaking the law if they followed it.