Common sense prevails as Welsh Government rejects tenant compensation proposal

A recommendation that would have required landlords to provide two months' rent as compensation to tenants upon serving a Section 173 ‘no-fault’ possession notice has been rejected by the Welsh Government.

The proposal, which suggested that tenants could retain the last two months' rent as compensation, raised significant concern within the sector – with the NRLA arguing it showed a lack of understanding of the reasons why landlords might need to take back possession, and could deter future investment.

Crucially, an approach of this kind would also have impacted tenants on the lowest incomes, disrupting housing benefit payments and disproportionately favouring tenants who were better off.

By rejecting it, the Welsh Government has recognised the need to balance tenant protections with landlords’ rights – which will help to maintain sector stability and ensure landlords can continue to act lawfully without fear of arbitrary financial penalties. 

NRLA chief executive Ben Beadle said: "We welcome the Welsh Government’s common sense decision to drop proposals that would have imposed arbitrary compensation payments on landlords using legitimate grounds for possession. 

Confidence in the Welsh private rented sector has been knocked significantly in recent years, but the decision to reject this measure outright is a step in the right direction. I am delighted that our concerns have been listened to.”

More information 

You can read the Welsh Government's recommendations in full here.

The news comes hot on the heels of a decision to carry out a comprehensive Welsh Housing survey following calls by the NRLA - you can read more about that here.

For more detail on the NRLA's campaigns work in Wales click here.