Propertymark members have expressed their dislike towards rent controls in Wales following the publication of a Summary of Responses to the Green Paper Call for Evidence on Securing a Path towards Adequate Housing – including Fair Rents and Affordability.
The Welsh Government received 371 replies regarding topics covering rents, tenant and landlord behaviour, affordability, and approaches for how the Senedd could enhance housing adequacy over time, consisting of evidence on how to meet this goal in Wales.
The Welsh Government said that many people struggle to pay their rent based on the statistics known regarding rent control and arrears. To gain a more accurate picture, they need opinions on how affordable renting is in Wales. A Welsh housing survey based on England’s equivalent to boost the collection of correct data and statistics has long been championed by Propertymark.
NEGATIVE VIEWS
Based on evidence that many landlords are exiting the private rented sector in Scotland due to rent controls, many negative views were stated regarding copying this model in Wales. Propertymark’s latest research also found that 95% of surveyed agents in Wales believe that rent controls will cut supply.
The professional body think the Welsh Government should concentrate on the urgent action required to end insufficient supply to cut the barriers to increased adequate housing. This opinion was widely represented throughout their replies to the Green Paper.
DISAPPOINTED
Tim Thomas, PropertymarkTim Thomas, Policy, and Campaigns Officer at Propertymark, says: “We are disappointed the prospect of damaging rent controls has been included within the widely supported debate of enshrining adequate housing into law, which we support.
“Given the substantial damage that rent controls have had on the private rental sector in Scotland, it would be a mistake for Wales to follow suit.
“Instead, the Welsh Government should focus on reinforcing existing legislation, remove any barriers to build more adequate homes, and improving the way they collect their data. To this end, a far more equitable solution would be to stimulate the supply of affordable homes in the private rented sector, by adopting progressive property taxation.
“One option open to the Welsh Government, would be to reduce levels of Land Transaction Tax for landlords’ properties or an exemption of new long-term rental properties from the 4% LTT levy on additional homes.
“Propertymark will continue to work with the Welsh Government to try and find solutions on building more adequate homes and avoid rent controls.”
