Proposal
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.
Downloadable Resources
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Rejecting Rent Controls and Right-to-Rent - Wales
Last updated: 11/03/2021 at 13:32 - 610.35 KB
Rent Controls
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.
Benefits
- 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
Right-to-Rent
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
- Crisis
- 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
Benefits
- 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
Campaign Updates
- 26 March 2021 - NRLA meets Welsh Liberal Democrat leader, Jane Dodds, and Housing spokesperson, Cllr Jackie Charlton
- 24 March 2021 - NRLA meets Mabon ap Gwynfor, Plaid Cymru Senedd candidate for Dwyfor Meirionydd
- 23 March 2021 - NRLA meets Rhys ab Owen, Plaid Cymru Senedd candidate for Cardiff West and South Wales Central
- 11 February 2021 - NRLA meets Cllr James Evans, Conservative Senedd candidate for Brecon & Radnorshire
- 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.
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