Government warned landlords will flee the market if rent controls are introduced

Ben Beadle

The NRLA has responded to the Welsh government’s “Fair Rents & Adequate Housing” consultation deadline, arguing that any move to introduce rent controls would have a disastrous impact on the private rented sector in Wales.

In its consultation submission, the NRLA sets out how rent controls have significant downsides in how they influence landlord behaviour and stifle housing supply.

The consultation submission written by the NRLA can be read in full by clicking here.

Commenting on the consultation response, Ben Beadle, chief executive at the National Residential Landlords Association, said: “With a chronic supply and demand crisis engulfing the Welsh PRS, it’s difficult to think of any policy measure likely to worsen the current situation more than rent controls.

“Wherever they have been applied, interventions of this kind have served only to deter, rather than encourage, investment.

“If the Welsh government is serious about addressing high rents and a lack of supply, it must take tangible steps to increase housing supply. A good place to start would be to back our calls for pro-growth measures to encourage investment in homes to rent.

“Now is not the time for failed ideologies to be pursued. We need progressive policies which will allow private landlords to deliver the high-quality private rented accommodation tenants need.”

 

x

Email the story to a friend!



9 Comments

  1. AcornsRNuts

    Are there still landlords left in Wales?

    Report
  2. LVW4

    I have sold all but one, and am at breakeven with rent/mortgage on that remaining property. Stupidly, I didn’t increase her rent for 5 years, so she’s done OK.

    If rent controls do come in, I will immediately increase her rent to the local norm, which would be a massive increase. If she won’t pay, it will be a S21. I am right out of empathy!

    Report
  3. A W

    So in Scotland the number of available properties has dropped by 10%, with rents increasing by around the same (yoy).

    For Wales to follow suit is the epitome of idiocy. Reducing your available properties by discouraging landlords only exacerbates a severe housing crisis.

    Report
  4. Woodentop

    Welsh landlords are not permitted to increase rent more than once in 12 months. I suspect many hiked rents are to cover contingencies like mortgage rate increase and threatened EPC requirements which will cost £k’s. If landlords don’t get their sums right with rent, they can’t do much about it for a year and are going to be out of pocket big time and escalate a mass exodus?

    Rent increases are not necessarily the fault of landlords? It is being forced upon them by governments!

    Report
    1. AcornsRNuts

      If the tenant leaves after six months, can the landlord increase the rent for the new tenant?

      Report
      1. Woodentop

        The 12 months is only applicable to a ‘current’ tenancy, a new tenant with a contract starts a new 12 month clock.

        Report
        1. AcornsRNuts

          Thank you.

          Report
  5. Selina888

    Hardly a surprise to learn that landlords are running for the hills. However I thought Sunak was now contemplating rowing back on EPC targets for homeowners and landlords? Should Starmer get in next year and pushes for Net Zero sooner, then I fear all properties that don’t have heat pumps, cavity insulation and their own driveway complete with an electric charging socket will soon be worth a lot less, ergo, inner city, period flats and houses, will be close to unsaleable or mortgageable. In contrast, and at the moment, Grade I/ II listed properties are exempt from EPC regulations, or did I get that wrong? Finally the EPC survey is fraught with inconsistencies and not a valid gauge of a property’s true insulation and energy rating. The whole thing’s a mess!

    Report
    1. LVW4

      So, now we know Labour WILL reverse the delays Sunak announced yesterday. Given there is little between the main Parties except a more common sense and pragmatic timeline towards the Net Zero nonsense, why would anyone vote Labour? Unless, of course, they are happy to pay for a new heat pump at £20k, a new electric vehicle at a stupid price, ULEZ in every town and city, and more stringent and costly EPC regulations.

      Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.