Wales considers round two of rental reform

Less than two years on from the landmark Renting Homes (Wales) Act, the Welsh government is looking into further rental reforms.

A new report from the Welsh Parliament’s Local Government and Housing Committee has made several recommendations for future rental rules.

The new White Paper on Adequate Housing, Fair Rents, and Affordability also sets out several proposals for future legislation. None of them are planned for this Senedd session, but a consultation is currently open and will run until the end of January.

What are some of the key proposals for the private rented sector?

• Create a “Property MOT” system to check whether rented properties are fit for human habitation. The proposal in the White Paper on Adequate Housing would require landlords to confirm that the home has a valid Gas Safety Certificate and Electrical Installation Condition Report; that smoke and carbon monoxide alarms are installed and working; and that property inspections have been completed. The landlord would also have to self-certify that the home contains none of the 29 hazards listed in the Welsh Fitness for Human Habitation regulations.

• Improve how data on local market rents is gathered, and making that data more publicly available. The government will also explore ways to allow tenants to challenge rent increases and allow Rent Officers to access property-specific rent information to calculate Local Housing Allowances.

• Allow tenants who receive a no-fault eviction to withhold rent for the last two months of the tenancy.

• Set up a statutory rating system for letting agencies.

• Investigate using local authorities’ compulsory purchase powers to discourage bad landlords, with a view to using them more widely if it proves effective.

• Create a way for local authorities to support people who can’t secure a rent guarantor.

• Make it easier for tenants to keep pets in rented homes. Additionally, amend the list of permitted tenant fees under the Renting Homes (Fees etc.) (Wales) Act 2019 to include pet damage insurance, or the additional cost of adding pet damage cover to an existing policy.

• Look into a Land Transaction Tax refund for landlords who buy properties for use as affordable rental homes under the control of the local authority.

Industry groups have welcomed some of the proposals. The National Residential Landlords Association and Propertymark welcomed the move to increase local authorities’ inspection and enforcement capacity. However, Propertymark also warned that bringing in more financial penalties for landlords (such as by allowing tenants to withhold rent) would drive up costs.

Other devolved headlines

Welsh tenants entitled to withhold rent after landmark safety court ruling – Inside Housing

New homes registrations up 12% in Scotland, NHBC finds – Scottish Housing News

Number of homeless people in Wales at record high – BBC