Welsh Elections: What happens now?

With the results of the Welsh elections fully counted and a new government in place, Public Affairs Officer Joshua Helm-Cowley outlines what the new devolved administration could mean for landlords. 

A minority government means Plaid Cymru’s reform agenda for the private rented sector and for your property in Wales is not quite so straightforward. Much of the party’s election manifesto is likely to be tempered by the need to win the votes of Labour Senedd Members. But it is still useful to understand what was promised in the election campaign and what is likely to make it through the Senedd. 

Senedd arithmetic

Rhun ap Iorwerth is the new First Minister of the first Plaid Cymru administration in the Senedd’s history. However, with his party only holding 43 out of a potential 96 seats, they remain short of a majority. Consequently, any legislation the new Welsh Government seeks to pass will require the support of other parties, primarily Labour due to their 9 Senedd seats. 

Of course, Plaid and Labour are not the only parties in the Senedd, however with both Reform and the Conservatives unlikely to support much, if any, of the new Government’s legislative agenda the only parties left are the Greens and Liberal Democrats. With the Greens on only two seats and the single Liberal Democrat, even if Plaid secured the support of all of these MSs, without Labour they would still be short of the majority they need to pass legislation. 

Section 173 – The Welsh no-fault eviction route

The Plaid Cymru manifesto had a clear commitment to end no-fault evictions in Wales. In order to do this, the new Government would need to legislate for the removal of Section 173 of the Renting Homes (Wales) Act 2016.

If you have utilised this ground previously you will no doubt be aware that Section 173 is very different from the now eliminated Section 21, which was the no-fault eviction route in England until this month, and prior to the Renting Homes Act in Wales. The longer notice period of six months and the restriction that this notice cannot be served within the first six months of the agreement means Section 173 gives renters greater security than Section 21 did.

However, with such a clear commitment to abolish this eviction route, it is highly likely that the new Welsh Government will bring forward legislation to end “no-fault” possession. With Labour passing the Renters’ Rights Act in England it is also unlikely that Labour MSs will oppose this.

Ultimately, whatever reforms to the process in Wales, landlords have to be confident they can regain possession of their property when they need to. In order for this to happen, significant reform of the mandatory possession grounds would be needed as well as reform of the grounds for landlords to sell or move into their property. 

Rent controls

The big issue likely on your mind is rent controls. If you were following our coverage of the Welsh elections, you will know that Plaid Cymru put forward a plan for rent controls in Wales which would limit annual rent increases to ‘the lower of wage growth or consumer price index inflation, or a clearly defined equivalent benchmark.’  

While we don’t have the exact legislation to scrutinise the new Government’s proposals, any push for rent controls is currently unlikely to pass the Senedd. This is because the Labour Party in Westminster have been steadfast in their opposition to rent controls, and Welsh Labour will be unlikely to want to undermine or contradict this position. 

A key caveat is that a new Labour leader may change the position of the Westminster party and, should this happen, a change in Welsh Labour’s position is also likely. We are clear that it doesn’t matter who is in power, rent controls fundamentally don’t work for either landlords or renters and will be fighting any calls for this. 

Pets and Renters’ Rights

One area where the new Welsh Government is likely to have more success is around enhanced rights for renters to request pets. The Plaid manifesto set out their position on this, saying it would give renters a ‘legal right to request a pet, with landlords unable to refuse unreasonably.’ 

This language mirrors that of the Renters’ Rights Act in England. Given Labour are the party who introduced the Renters’ Rights Act, it is unlikely Welsh Labour would resist calls to expand renters’ ability to request a pet. This likely applies to other measures the Welsh Government may introduce that seek to equalise the rights of renters in Wales with those in England.  

The issue of pets has been a hotly discussed topic among landlords since the Renters’ Rights Act was first published. There are benefits to being open to your tenants keeping pets, with renters with pets often staying longer and being happier. We have published extensive guidance on pets, highlighting ways to manage any additional risks, which you can find here. 

Conclusion

The key with all of these issues is that it is still early days of this government. It hasn’t yet published any proposals for reform, or officially set out its plans. Until pen is put to paper and legislation reaches the Senedd for debate, we are speculating on what will happen and what the different parties’ positions will be. 

It is also important to remember that even if the Welsh Government publishes its reforms to the private rented sector tomorrow, it takes time for legislation to become practical reality. Consultations must be conducted, legislation scrutinised in the Senedd and then a pre-implementation period for the sector to adjust. In conclusion change is clearly coming, but is not imminent. 

We will of course be putting your views on any proposed reform to the new Welsh Government and will keep you informed of all the important developments.