Industry News Victoria Barker 12/10/2022

Welsh First Minister backs NRLA welfare calls

The First Minister of Wales Mark Drakeford MS has said he backs NRLA calls for welfare reform, including proposals to lift the freeze on housing benefit. 

During First Minister Questions in the Senned on Tuesday, Natasha Asghar MS (South Wales East) asked the First Minister what steps the Welsh Government is taking to improve the supply of private properties to rent in Wales. 

The First Minister flagged the £30m leasing scheme in Wales, which enables local authorities to lease properties directly from landlords. 

Ms Asghar then cited NRLA research, which reveals Wales needs 9,000 houses a year to meet housing targets.  

She noted that 38% of private landlords have told the NRLA they plan to cut the number of properties they let out and asked the First Minister to consider concerns that rent controls would make it more difficult for tenants to access homes.  

She then asked him to discuss the issue with the association. 

Responding, Mr Drakeford told the Senedd he is aware of the NRLA’s work, saying he agreed with a number of NRLA calls on welfare, including NRLA calls for the UK Government to increase local housing allowances.  

Mr Drakeford also said he agreed with the NRLA that the freeze on housing benefits and the five week wait for universal credit needs to end. He said:  

“I agree with all of those points made by the NRLA and hope that the Member will wish to convey those points to the Government that's responsible for them.” 

Speaking about the issue of rental housing supply in Wales, Mr Drakeford said he was also aware there is a risk that landlords will leave the buy-to-rent market, due to the rapidly rising cost of borrowing money, he stressed the rise of mortgage rates was as a result of UK Government decisions. 

Watch the question session here and read a full transcript of the proceedings. The proceedings were also written about in this BBC News article.

NRLA campaigning 

The NRLA continues to call for urgent action to tackle the housing supply crisis in Wales.  

This includes calls for the Welsh Government to exempt from the 4% Land Transaction Levy the purchase of additional homes for long term rent.  

Earlier this year, the NRLA’s Shadow White Paper for the PRS, “The Future of Private Renting in Wales”, set out further proposals for how the private rented sector could be improved. 

This includes why rent controls would have a destructive impact on the private rented sector and calls for the introduction of a Welsh housing surve.