Welsh PRS: Getting the priorities right

With more than 12,000 landlords leaving the Welsh private rented sector during the last Senedd term, we have set out what we believe need to be the Government’s top three priorities when it comes to housing. Public Affairs Officer Joshua Helm-Cowley explains more.

Rent controls, the potential loss of section 173 and the operation of Rent Smart Wales need to be at the top of the agenda when it comes to private rented sector housing.

We made the argument in response to the Welsh Government’s Local Government, Housing and Planning Committee’s open consultation, asking people what three issues should be the committee’s focus this term.

With more than 12,000 landlords and 4,443 homes leaving the Welsh PRS during the last Senedd term confidence among Welsh landlords is  at its lowest level on record, dropping below England for the first time.

When asked why, one of your most common answers is simply ‘Government’.

Our sector has ready gone through a huge period of upheaval with the introduction of the Renting Homes (Wales) Act, and all the suggestions are there is more up ahead, with proposals set to erode confidence further and potentially trigger and exodus from the market. Here's what we had to say on each of the key topics.

Rent Controls

It will come as no surprise that rent controls was the number one issue flagged in our response. The cabinet secretary for housing and the First Minister have both reaffirmed their commitment to “fair rents” in the Senedd, and legislation is likely within the next few years. Plaid Cymru’s manifesto proposed capping annual increases at the lowest of wage growth, CPI inflation or an undefined alternative benchmark. 

We have asked the committee to press the Government on:

• Why it thinks rent controls will work in Wales when they have failed elsewhere?
• What has changed since the previous Welsh Government rejected controls in 2024 over fears they could hit supply, push up rents and increase homelessness?
• How it believes controls will improve affordability when there is evidence often worsen it?

We know how important this issue is for you, and the sector as a whole, and we will continue to campaign against the implementation of rent controls in Wales.

Removal of Section 173 – the no-fault eviction

Following the abolition of Section 21 in England, Wales is the only nation in Great Britain with a no-fault eviction route, something the Government has committed to ending in this Senedd term. 

Unlike England Wales has no mandatory grounds covering a landlord’s changing circumstances, with no ground to sell with vacant possession, move back in, or for a lender to repossess.

If the Welsh Government scraps section 173 without wider reform, landlords – and lenders – would, for the most part, be unable to regain their properties.

We also flagged the knock-on effects of an increase in fault-based claims, which could affect tenants’ access to social housing, also pointed out that many landlords will need vacant possession to carry out EPC upgrades, something particularly important in the context of the new MEES standards.

If the Welsh Government does press ahead and remove section 173, the introduction of new mandatory grounds for possession will be essential.

Rent Smart Wales

Issues with Rent Smart Wales (RSW) are among the most common reasons landlords in Wales contact us here at the NRLA, with everything from licensing delays to training problems cited as common complaints. We are arguing that proper scrutiny of RSW matters more than ever, as its role expands. 

We have raised several issues, largely centred on accountability.

The Government’s own evaluation found it is not always clear to whom RSW is accountable, and despite being funded by landlord fees, RSW publishes no accounts and is able to change its fees without consultation. 

Another key issue is effectiveness.

RSW was created to help raise standards, but it is often seen as punishing good landlords trying to comply, while failing to tackle the unlicensed landlords who undercut them.

It has no estimate of the number of unregistered landlords, so we are concerned that the Welsh Government intends to give the body additional responsibilities when it is not adequately meeting its current obligations.It is against this backdrop we have urged the committee to ask whether any expanded role will come with proper accountability measures.

Pressing questions

In the wake of the consultation, we will continue to demand answers to these pressing questions, with these three priorities sittinfg at the heart of our campaigns work. They will also be the focus of conversations with MSs, the Welsh Government and stakeholders over the next term and beyond.

For all the latest updates on these issues and more keep an eye on our news site and social media accounts.