The Welsh Government must take urgent action to halt the exodus of landlords from the private rental sector (PRS), industry experts warn, as fresh data reveals a stark decline in rental property availability.
Figures from Rent Smart Wales show that 17 of Wales’ 22 local authorities have experienced a reduction in landlords between January 2020 and January 2025, culminating in an overall loss of 1,107 landlords.
This contraction in supply has coincided with the introduction of the Renting Homes (Wales) Act, sparking concerns over the long-term viability of the sector.
Propertymark has called on the Welsh Government to prioritise measures that incentivise landlord investment rather than penalising it. However, instead of encouraging growth, the latest budget announcement from Cabinet Secretary for Finance, Mark Drakeford, included a one per cent increase in Land Transaction Tax for those purchasing additional properties— a move industry leaders warn will exacerbate the decline.
FOLLOW OUR CALL
Tim Thomas, Policy and Campaigns Officer at Propertymark, says: “The shrinkage of the private rented sector, as proven by this recent Rent Smart Wales data, shows that the Welsh Government must strongly consider the impact future legislation will have on the sector.
“Given these concerning figures from across most Welsh communities, the Welsh Government must follow our call for pro-growth taxation and reduce Land Transaction Tax for landlord investors.”
NO-FAULT EVICTIONS
Further compounding fears for landlords, the Welsh Government recently backed a policy allowing tenants to withhold their final two months’ rent as compensation in no-fault evictions.
Propertymark, which provided both written and oral evidence to the Senedd’s Local Government and Housing Committee inquiry, argues that such measures will further destabilise the sector and deter investment.
The trade body has long opposed policies that increase financial pressure on landlords, stating that excessive taxation, rising mortgage rates, and escalating maintenance costs are already making rental investments less viable.
Propertymark has also been a vocal opponent of rent controls, successfully lobbying against their inclusion in the Welsh Government’s ‘White Paper on Adequate Housing, Fair Rents and Affordability.’
