Concerns have been raised in Parliament over the mandatory regulations and costs imposed on private landlords in Wales, which many, including a Labour council, believe have reduced the number of private rental properties on the market and pushed up costs for renters.
During 'Wales Questions' in the House of Commons last week, The Parliamentary Under-Secretary of State for Wales, and MP for the Vale of Clwyd, Dr James Davies, answered questions from members on 'Private Rental Costs', which included a question from Clwyd West MP David Jones on the new mandatory regulations foisted on private sector landlords in Wales through the Renting Homes (Wales) Act 2016.
Mr Jones said that “according to Rent Smart Wales, the number of registered landlords in Wales fell by 328 during the two years to January this year and there were 301 fewer rental properties available”.
He asked The Parliamentary Under-Secretary of State for Wales: “Does my hon. Friend agree that a significant cause of the current worrying state of the private rental market in Wales is the new legislation introduced by the Welsh Government, which imposes expensive and byzantine licensing obligations on landlords.”
Responding, James spoke of the need to “incentivise landlords” in Wales.
He said:
“I thank my right hon. Friend and constituency neighbour. He is perfectly right to raise this issue. He is referring to the Renting Homes (Wales) Act 2016. It may be well intentioned, but the fact is that there is a shortage of housing and if we want to keep landlords in the market we need to incentivise them, so the mandatory regulations and costs imposed are really in place at the wrong time.”
In response to a question from another MP, James stressed that the UK Government has committed to tackling issues in the private rental sector in England, including improving standards through the introduction of the decent homes standard, and providing tenants with greater security by banning “no fault” evictions, but emphasised that “rental issues in Wales are a matter for the Welsh Government”.
He also referred to “a deficit of housing” in North Wales, which he said needs to be addressed through building more homes.
He said:
“I would point out that in 2021-22 there were three new homes built in England per 1,000 and just 1.7 per 1,000 in Wales, so there is much work to do.”
In response to a question on the increase in private rental costs in Wales, James highlighted the support being provided through the local housing allowance rates, which were raised to the 30th percentile in 2020, and through the discretionary housing payment scheme.
He added: “There is, in addition, the whole array of support that has been provided through the recent cost of living pressures.”
