Propertymark has called on the Welsh government to focus on boosting the supply of privately rented housing instead of enabling tenants who may be subject to a Section 173 possession notice eviction to keep the last two months’ rent as compensation, which the professional body referred to as ‘concerning’.
The news comes after the Welsh government clarified that it would support the option of allowing renters to retain the last two months of their rent as compensation when facing a Section 21 eviction in response to a recent inquiry into the private rented sector from the Senedd’s Local Government and Housing Committee, with Propertymark issuing both written and oral evidence as part of the process.
The professional body remains concerned about the committee’s advice to examine the feasibility of enabling tenants who are subject to eviction to keep the last two months’ rent as compensation. This is especially the case when the Renting Homes (Wales) Act 2016 already gives tenants with six months’ notice for evictions greater protection than tenants in England who receive a similar notice.
The Welsh government, however, embraced the recommendation to interact with stakeholders and report back with conclusions by the end of April 2025.
Propertymark wrote to Jayne Bryant MS, the cabinet secretary for Local Government and Housing, stating that they would be happy to be included in the Welsh government’s stakeholder engagement prior to April on this recommended measure.
The professional body states that introducing extra financial penalties for landlords is counterproductive when they are already experiencing excessive costs from tax hikes, climbing mortgage rates, and repair costs, as it risks hindering the supply of rental homes, and will, therefore, cause rents to increase.
Increasing supply is the most efficient method to stabilise rents and stop further market distortions. Other measures Propertymark encourages the Welsh government to pursue include constructing more social homes and reviewing the phasing out of tax relief on mortgage interest for landlords, and the extra Land Transaction Tax surcharge on buy-to-let property, which was increased across all bands in the December 2024 draft budget.
Building more social housing was recommended by the Senedd’s Local Government and Housing Committee, while the Welsh government stated that it will look at a register for accessible social housing properties.
By reviewing taxation, the Welsh government will be able to implement policies that cut costs for those intending to invest in the private rented sector, which will then increase supply and make renting more affordable for tenants.
Despite this, none of these measures were included in the Welsh government’s response to the committee’s report.
Regarding other recommendations that the Welsh government has accepted in principle, which includes the training and education for landlords and tenants on the grants and support available via the rapid response adaptations programme, Propertymark agrees with this recommendation.
However, the professional body expressed its disappointment that an opportunity to implement mandatory qualifications as opposed to a one-off course offered via Rent Smart Wales was not offered here.
Instead, Wales should be more aligned with Scotland that has mandatory qualifications for letting agents.
Finally, Propertymark stated that it is pleased the Welsh government has accepted the prospect of introducing a register of accessible accommodation available to rent. The professional body suggested this in both its oral and written evidence to the Senedd Local Government and Housing Committee’s Inquiry into the private rental sector as well as in the Levelling Up, Housing and Local Government Committee into their inquiry into disabled people in the housing sector.
However, they stressed that membership should be voluntary. Where appropriate social housing is not available, local councils should signpost people to suitable property in the private rental sector. This could be beneficial as it could cater for local support mechanisms for tenants.
Tim Thomas, policy officer at Propertymark, commented: “Propertymark has consistently supported both the Senedd Committee and the Welsh government in policy positions to improve the private rented sector in Wales. It is positive to see that Propertymark’s positions have been accepted by the Welsh government, including improved training which we have called for as part of our review of Rent Smart Wales, and improving access to the private rented sector through a local authority database of adaptive property in the private rented sector.
“The Welsh government has listened to our concerns over the unintended consequences of implementing rent controls in Wales by currently discounting them as part of their White Paper. However, they must now continue to listen to our advice over the likely impact of awarding two months’ compensation to tenants in receipt of a possession notice will have on the sector. We are continuing to engage with the Cabinet Secretary on this issue.”
Bonkers socialist madness, so could a Landlord do the same with the mortgage if selling ? What’s going to happen next year keys for the car to move, or maybe the other half for a rogering?
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Who’s paying the last 2 months mortgage then?
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Further evidence, if indeed it was needed, that politicians haven’t an ounce of common sense or business sense and that they all share the same brain cell which is loaned out on a daily basis!
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I think that’s insulting to people with only one brain cell, personally…
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So the tenant looks to move onto a new property and seeks a reference from the landlord, or letting agent, who advise that they didn’t bother paying the last 2 months rent, as they were advised to keep it for compensation.
The new landlord knows that will be the case if they grant them a tenancy, so decide to give it a miss, leaving them potentially homeless and on the steps of the local authority, so re housing.
Great idea, NOT.
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Most s21 are used to evict tenants for non payment of rent and the landlord just writes off the rent arrears. In this case 2 months of nothing equals nothing.
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I worry this madness will be heading to England.
Why are landlords always portrayed as rich and greedy.
What am I paying the mortgage for the last two months with, fresh air?
I really wonder if the government stops to think, landlords giving up helps no one, it just pushes up rents and increases the burden on councils if no suitable homes are available for rent. It makes moving for say a new job more difficult, stagnating growth, it helps no one, least of all tenants. It might be popular rhetoric but its a very short sighted policy and should be called out for what it is.
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Will the last PRS landlord to leave Wales, please turn off the lights.
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The Renting Homes (Wales) Act 2016 forces landlords here to give 6-months notice to tenants, if they require possession for themselves, for family member or to sell. We have had a couple of instances where the tenants have found alternative accommodation within 2 or 3 months, so they move out sooner and they only pay rent for the period of occupancy.
If implemented, this policy would encourage tenants to wait 4 months before starting to look for a new home, in order to get 2 free months rent. This could mean they miss out on a suitable new home and end with them in a 2-month panic and homeless due to the decreased supply since WAG brought this Act into force on 1/12/2022.
Not a good idea for the Landlord or Tenant (AKA Contract Holder).
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Speaking as a tenant I can fully understand why it’s not a feasible option you landlords have costs and mortgages and families to feed etc …. But …. On the other hand like good landlord or tenants you have the latter. Many rouge or unscrupulous landlords abuse the section 21 rules hence I’m assuming this is a deterrent to only use a section 21 as a LAST not FIRST resort…either way if the tenant isn’t 100% update on payments and has prior ASB complaints against them then it shouldn’t be entertained in the first instance. It has merit but needs reworking so it’s not abused by tenants house hopping.
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Politicians don’t seem to be able to understand that Agents / Landlords do not serves S.21 Notices without good reason, as they want to keep their rental properties continuously occupied for a long time. Every time a tenant vacates they have more costs, redecorating, etc and they loose income whilst waiting for the new tenant to move in. Under the Housing Acts, if we had a troublesome tenant (frequently late paying, not keeping the property / garden in good order, etc) it was easier to serve a S.21 because it was quicker and cheaper than going to court with a S.8, but it was also better for that tenant because they did not get a CCJ, which would have made it very difficult to get another rental property.
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I see the section 21 as the housing version of the “it’s not you, it’s me” break-up. There is a reason its just a lot easier not to tell you as you’ll make life a living h£ll…
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