NRLA calls for a comprehensive review of the way the private rented sector is taxed have been backed by Welsh Minister for Climate Change, Julie James MS.
The Minister made the comments at an event launching the NRLA’s State of the Welsh Private Rented Sector report, adding that she would welcome ideas as to how to ensure the tax system supports the provision of long-term homes to rent.
Research included in the report shows 76 per cent of Welsh landlords said demand for rental properties increased in the first quarter of 2023.
Despite such strong demand, 48 per cent said they plan to cut the number of properties they let, something that could have a devastating impact on renters struggling to find a place to live.
Amidst this supply crisis, the NRLA has called on the Welsh Government to exempt the purchase of new homes for long term rent from the four per cent Land Transaction Tax levy on additional homes, with the minister confirming she is interested in looking at ways to ensure a level playing field for the private rented sector.
Elsewhere in the report the NRLA highlights the lack of comprehensive, reliable data on who lives in the sector, its size, and its make-up, as a barrier when it comes to informed decision making.
Ms James agreed the Government needs better data to aid the process, and threw her weight behind the NRLA’s call for a dedicated Welsh Housing Survey to give a complete overview of the sector.
Ben Beadle, Chief Executive of the NRLA, said: “Wales needs a strong and vibrant rented sector. We welcome the Minister’s openness to look at how the tax system can support the provision of homes tenants need.
“It is welcome too that the Minister has agreed in principle with the NRLA’s call for a Welsh Housing Survey. Too often good decisions have been hampered by a lack of robust data on the state of the rental market.
“We will continue to work with the Government to ensure policy is rooted in evidence and what works for responsible landlords and tenants.”
Key recommendations
Among key recommendations in the report are calls on the Welsh Government to:
- Establish a Welsh Housing Survey or collect and regularly publish the equivalent data for Wales
- Carry out and publish a comprehensive assessment of the size and make-up of the PRS and its inhabitants before committing to its fair rents policy
- Encourage the UK Government to undertake a full review of taxes affecting the private rented sector
- Undertake a full review of the successes and failures of the Renting Homes (Wales) Act on the supply of homes in the PRS
This week's event at the Senedd was chaired by Mike Hedges MS, with Ben Beadle and Dr Robert Smith from the UK Collaborative Centre for Housing Evidence also addressing industry stakeholders alongside Ms James.
More information
For more information and to download a copy of the report in both English and Welsh click here.