Wales: How does a policy announcement affect you?

Changing legislation is one of the biggest concerns landlords can have, particularly where new legislation significantly increases the risk profile of their investment. Therefore it’s not surprising that landlords might be worried when a new policy is announced or implemented. 

Landlords in Wales will be particularly mindful of the risks of legislative change given the last year.

During that time they have grappled with the difficulties of adhering to the new occupation contract requirements, changes to property standards, new rules around service of documents and extended notice periods. All of which were introduced by the Renting Homes (Wales) Act coming into force in December 2022. 

However, it’s not just implementing new legislation that can cause concern. Many landlords were alarmed by a recent consultation on introducing rent controls in Wales.  The ‘Fair Rent and Right to Adequate Housing’ asked for opinions on a range of different rent control options.

It’s not just landlords who should be sensitive to the risks of implemetning legislation though. Where legislation fails to give landlords confidence it can lead to a reduction in supply, increased rents, or it may lead to lower income tenants finding it more difficult to rent. Often this can lead to outcomes that run counter to the intention of the legislation itself. 

For example, in the period after Renting Homes (Wales) came into force, accelerated possession claims increased by 236% in Wales, likely due to landlords assessing the risk of their existing tenancies/portfolios.  

Similarly, the announcement of the rent controls consultation coincided with a sharp rise in rental inflation in Wales. Normally, rental inflation in Wales is lower than other areas of the UK but following the rent controls consultation, Wales now has the highest rate of rental inflation in the UK.

Many of the landlords the NRLA have spoken to have cited concerns that given Wales’ devolved status, it is not always clear whether a policy announcement from Westminster will have an impact on a Welsh landlords portfolio.

The perfect case in point was the Prime Minister’s recent announcement that he would 'scrap policies to force landlords to upgrade the energy efficiency of their properties, but instead continue to encourage households to do so where they can'.  

Following that announcement the NRLA was asked regularly by landlords in Wales “do you think that Welsh Government will now do the same?”  “When will Welsh Government announce their decision?”

In this case they didn’t have to, this relates to a non-devolved matter and the Westminster statement covers England and Wales, so there was no announcement to make.

In contrast, many other pieces of England-only legislation are reported as if they affect the whole of the UK.  Most notably the Renter’s (Reform) Bill, which will see England do away with Section 21 notices and fixed terms,  as well as introduce a number of new mandatory grounds for possession....None of which will apply in Wales.  

Given all of this, it can be difficult to understand exactly when a piece of policy will affect you.

This is why the NRLA will always endeavour to make it clear where a policy is specific to Wales.

We will also focus our efforts on ensuring we are arguing for pro-landlord policies with the right stakeholders.

We regularly engage with members of the Senedd on devolved matters and Westminster where it is not devolved. We also seek to build partnerships across the sector to make the case for positive change. For example, working with local authorities, the Welsh Government and tenant groups to make the case to Westminster to increase Local Housing Allowance (LHA) rates. 

Regardless of whether it is a devolved matter or not, regardless of whether the decision is made by a Conservative-led Westminster or a Labour-led Senedd, you can be assured that your voice is being heard. 

Regardless of which political party leads either chamber the NRLA will always be the voice of the landlord in Wales and one that works tirelessly on your behalf.