Leasing Scheme Wales set to go

A flagship Welsh Government scheme, which allowed landlords to rent out properties via their local authority is set to end in January next year. 

The Leasing Scheme Wales was set up and funded by the former Welsh Labour Government and managed by individual councils. 

Launched in January 2022, it allows private landlords to lease properties to local authorities for periods of between five to 20 years. Councils take over the management of the property, not only guaranteeing rental payments for the length of the lease at Local Housing Allowance (LHA) rates, but offering grants of up to £5,000 to either improve the general standard of the home, or its EPC rating.

Vital support

There have been ongoing concerns about how the programme could be impacted by uncertainty over LHA rates – which are set by central government – but around 700 homes in Wales are currently successfully let via the scheme.  

This not only supports landlords and tenants, but also helps local authorities looking for an alternative to temporary accommodation for those in need of a home. 

Despite this the initial five-year programme is due to end in the new year, with the new Plaid Cymru minority Government currently having no plans to extend it.

Call for clarity

Many landlords using the scheme are concerned about what will happen when the funding runs out – and calling for clarity so that they can start to plan. 

We reached out to the Welsh Government, who said the scheme was planned as a five-year programme, and therefore no further properties should be onboarded after December this year. It also confirmed there is no additional Welsh Government funding available to extend the scheme with the current administration looking at new priorities to meet housing need.

It says it is now up to local authorities to decide how they will manage the scheme beyond the current funding period and that, as closure is approaching, councils should be actively considering how they manage new expressions of interest from landlords.

I am using the scheme, what should I do?

If you are currently renting out properties via the scheme we would advise you get in contact with your local authority directly to find out what its plans are. 

Without Government funding the programme is unlikely to continue locally, so if you are considering putting your properties forward, again, you should speak with your local council to find out what its plans are long-term. 

In the meantime, we will keep you up to date on any policy proposals put forward by the new administration, so keep an eye on our news site and social media channels for details.