To Rent Control or Not? That is the Question?

The National Residential Landlords Association (NRLA) is warning the Welsh government to steer clear of rent controls.

Whilst the Welsh government have been in consultation on rent controls, the association claims it would force landlords to quit, reduce stock and actually push rent up further.

Landlords have already had to cope with the drastic changes under the Renting Homes (Wales) Act and would benefit from time to understand and apply these changes whilst policymakers continue to reflect on the reforms.

The NRLA says the act has already damaged Landlord confidence, as evidenced by the high level of possessions that took place in the first quarter of the year, with many Landlords still debating their position in the PRS (Private Rented Sector).

Propertymark take a very similar stance to The NRLA and have advised The Senedd to 'avoid rent controls at all costs' urging them to learn from Scotland's lessons and the impact there on the PRS.

The current supply of PRS homes in Wales is a concern with only 16% of Landlords planning to extend their portfolios even though demand is increasing.

Propertymark state action is needed on addressing this by looking at these issues to improve the chances of the PRS in Wales:

• Exempt landlords from the 4% Land Transaction Tax Levy on the purchase of additional homes, providing they are used for long-term residential let.
• Launch a review of all taxes that relate to private landlords to reduce costs for those wishing to invest in the PRS
• Provide financial support through grants and loans to landlords to upgrade the energy efficiency of their properties.
• Improve the accountability of Rent Smart Wales. RSW covers the whole of Wales but is managed from Cardiff City Council. While we are relatively supportive of the aims of RSW, we believe that RSW lacks transparency and a clear line of accountability. The work of RSW does not appear to be guided by a central national strategy nor does there appear to be an annual evaluation of its work.
• Extend the training requirements for letting agents. The Welsh Government’s policy intention through Rent Smart Wales is looking at training and the registration of property, whereas we believe regulation should be focused on ensuring that every agent involved in lettings has the right skills to do the job and meets a minimum training standard through qualifications. We believe all agencies should ensure relevant staff are qualified and that staff understand and follow a Code of Practice. Unlike the training requirement through Rent Smart Wales, achieving a qualification should never be a box ticking exercise. Completing the right qualification drives the credibility of the sector and equips agents with the tools to meet the challenges ahead.

Though times have been tough, if you are supported by an agent to advise and guide you through the renting process as a Landlord in Wales, it can still be a beneficial form of income and a stress free experience. Hopefully the biggest challenges are now behind us and the benefits to both Landlord and Contract Holder will be observed.

If you’re a Landlord looking for support with your rental property in the Bridgend area, we’d be more than happy to discuss our services with you 01656 766666 or drop us an email bridgend@porters-uk.com.