Senedd Elections: Proposals for the private rented sector

The Senedd elections on 7th May are hotting up, with polls suggesting there will be a change of government in Wales for the first time since devolution., With proposals ranging from rent controls to reviewing Rent Smart Wales, Public Affairs Officer Joshua Helm-Cowley sets out the main parties’ key proposals.

The campaign to form the next Welsh Government is fully underway with political parties setting out their plans for the next four years.

Following the launch of the Welsh Liberal Democrats’ manifesto on 14th April, we can now examine all of the  parties’ manifestos and dive into how they could affect you and your property business.

Plaid Cymru

Plaid Cymru place reforming the private rented sector at the heart of its offering to the Welsh people, including a proposal on rent controls: “Fair rent-setting – through limiting annual rent increases to the lower of wage growth or consumer price index inflation, or a clearly defined equivalent benchmark.”

This proposal for in-tenancy rent controls comes alongside a commitment to end the ‘no-fault’ possession route currently available to Welsh landlords through section 173 of the Renting Home (Wales) Act 2016.

This was introduced in December 2022 as a replacement for Section 21 with the move from ASTs to occupation contracts and currently allows landlords to serve six months’ notice during a periodic contract without needing to provide a reason.

Reform UK

Houses in multiple occupation (HMOs) and HMO landlords are the focus of Reform’s proposals for the Welsh private rented sector with an emphasis on stronger enforcement powers for local authorities with high proportions of HMOs. In particular, there is a commitment to: “strengthen powers … to stop there being too many HMOs in certain areas.” 

It is, however, unclear from Reform’s manifesto what these powers would entail, and whether they would apply to, for example, student HMOs. If  they do, this could heavily impact university towns such as Aberystwyth, Cardiff, Bangor and Swansea and lead to a reduction in the number of available student properties each year.

Welsh Labour

Further improving accessibility and greater rights for tenants form the backbone of Welsh Labour’s manifesto. To improve accessibility, it would introduce a new “guarantor scheme to enable more to people secure a rental property.” On improving tenants’ rights, Welsh Labour state it will look to introduce new rights for tenants who want to keep pets. You will likely be aware that the Renting Home (Wales) Act 2016 implemented a right for tenants in Wales to ask for a pet and landlords have to consider the request appropriately. Labour has made clear that they intend to strengthen this right should they form the next Welsh Government.

Wales Green Party

The Green Party in Wales proposes by far the most radical reform. Its manifesto includes a commitment to not only ‘freeze rents’ initially but to then introduce ‘Rent Pressure Zones’ following the freeze. In these zones local rent caps would be set and increases would only be permitted where “landlords deliver genuine improvements to homes”.

The Greens would also legislate to remove the ‘no- fault eviction’ route for private landlords in Wales. All of this would likely require new legislation and take time to enact.

Welsh Conservatives

The Welsh Conservative Party's  only commitment for the private rented sector in its manifesto is to “review the operation of Rent Smart Wales.” Our members have consistently raised concerns about how Rent Smart Wales (RSW) operates, with frequently reported issues ranging from administrative delays to accessibility problems, as well as inconsistencies in service quality across different regions. 

The extent to which the party would reform the scheme is unclear, with registration and landlord licensing set out in law. Any significant changes would require new legislation.

Welsh Liberal Democrats

There are no private rented sector specific proposals within the Liberal Democrat manifesto, however there are some policies of note. 

Specifically, the Lib Dems have committed to putting in place a “ten-year emergency upgrade programme” for energy efficiency. It is unclear if this programme would be available to private landlords, however with energy efficiency being a key issue within the Welsh private rented sector, we would be pushing for landlords to able to access this programme.

Change will take time

While some of these policy proposals may alarm or even frighten you, it is important to note that, whoever forms the next Welsh Government, the Welsh private rented sector is not going to change radically on 8th May. Those major changes proposed in the manifestos, such as limiting in-tenancy rent increases, eliminating the no-fault eviction route or even restrictions on HMOs would require new legislation before being enacted. 

As part of the legislative process, we would also be able to feed in and represent your views on any of the specific proposals, as we did previously when rent controls were considered during the previous Senedd. 

But for now, it is down to the Welsh public to decide who they want to be the Government for the next four years. We will be following the campaign closely and updating  you on what the results could mean for Wales  after 7th May.

More information

For more on the party pledges – direct from the leaders themselves, click here.