Propertymark members urge for no rent controls in Wales

Propertymark members urge for no rent controls in Wales

Propertymark members have urged Wales not to introduce rent controls, with the policy being blamed on cutting rental supply in Scotland.

Instead, members argued that the government improve the relationship between local authorities, property agents and landlords, improve data and intelligence in the sector and provide greater support for landlords to house vulnerable and older people and to decarbonise stock.

The Welsh government is developing proposals for the White Paper consultation on housing adequacy, fair rents, and affordability, which will be issued in the summer.

Propertymark has expressed disappointment that the topics of fair rents, possibly achieved by rent controls, has been included in the overall adequate housing discussion that is supported across the housing sector.

Tim Thomas, policy, and campaigns officer at Propertymark, said: “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.”

The replies were detailed in the 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.