BTL landlords reject proposed rent controls as more investors exit the PRS

The National Residential Landlords Association (NRLA) has published a shadow White Paper that it hopes the Welsh government will take into consideration.

The Shadow White Paper, entitled “The Future of Private Renting in Wales”, sets out the NRLA’s proposals including an analysis of why the introduction of rent controls would have a destructive impact on the Welsh private rented sector (PRS).

Supporting the White Paper, the NRLA commissioned an independent report by Capital Economics which suggests that Wales would need an average of just under 9,000 new private rented properties to meet housing targets.

Despite this, the policies of Welsh government continue to dissuade investment. Just 11% of landlords polled by NRLA said they planned to increase the number of properties they let out whilst far more, 37%, plan to reduce the number they rent out.

Ben Beadle, chief executive of the NRLA, said: “Our White Paper sets out what must be done in Wales to build a fairer, more inclusive PRS for both tenants and landlords and the damage that outmoded notions of rent control could have on the market.

“Ultimately, with affordability and supply issues continuing to dog the Welsh private rented sector, rent controls would exacerbate these ongoing problems and fail to provide a solution fit for the twenty-first century.

“Rather than focus on rents, the Welsh government must target costs, making the provision of homes more affordable.

“A good start would be removing the controversial 4% Land Transaction Levy on the purchase of additional homes which disincentivises investment in much needed homes.”

 

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One Comment

  1. Woodentop

    This is what happens when a government interferes with a private market and starts to dictate. PRS is not their business and should be no surprise that they are destroying the hand that helps with housing. Tenants used to have a choice, but failings by government to keep up with social housing demands, has created a situation they are high jacking PRS for their own ends and ideology. Considering 90% of PRS is good quality homes, why do they need to get involved and make a hash of everything!

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