Propertymark gave oral evidence to the Welsh Parliament’s Local Government and Housing Committee inquiry into the private rented sector on 13 March 2024.
During the evidence session, Timothy Douglas, Propertymark’s head of policy and campaigns, stressed the importance creating a comprehensive strategic plan for the private rented sector that is evidence based and built on meaningful stakeholder engagement to ensure it can meet future housing needs and demands. Lessons must also be learnt from the implementation of previous legislation to deliver a workable output for the sector.
To assist with the ongoing concern of housing supply across Wales, Propertymark called on the Welsh Government to conduct a comprehensive review on taxes that impact private landlords, including a full review of the framework which impacts the ability of buy to let property under Land Transaction Tax. Within the evidence session, Propertymark also highlighted the need to create an overall healthy housing mix via additional aspects which consider initiatives such as ‘build to rent schemes’ – with the overall objective of providing a sustainable and diverse offering that keeps pace with current and future housing needs.
Key evidence was also presented regarding the damage of rent caps and potential plans for proposals across Wales. Propertymark outlined the detrimental effects already witnessed within the private rented sector across Scotland following their introduction – with rent caps contributing to a near 13% increase in rents and have caused investment in the private rented sector across Scotland to stall. This has also contributed to further housing supply issues, as many letting agents and their landlords experience new pressures and uncertainty, as well as potential increases in overheads which must be planned for.
Douglas commented: “The private rented sector in Wales has undergone huge and significant change via the Renting Homes (Wales) Act so it now time for policy makers to reflect on the implementation of these reforms and allow time for letting agents, landlords and tenants to understand and apply the changes. To help meet the demand crisis for rented homes, the Welsh government need to understand recent tax changes that have impacted landlords and use the policy levers at their disposal by reducing higher rates of Land Transaction Tax on buy to let property.
“Our message is clear on rent control that it must be avoided at all costs and through introducing a Welsh Housing Survey, a more accurate picture of housing and renting in Wales can be established that can help lead to pro-growth policies and a mix of housing options that work for everyone in Wales.”
Meanwhile, Propertymark has highlighted the importance of fixed term tenancies to housing minister Jacob Young, who has responsibility for the Renters (Reform) Bill.
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