Following the release of a Summary of Responses to the Green Paper Call for Evidence on Securing a Path towards Adequate Housing, Propertymark members have expressed strong opposition to the implementation of rent controls in Wales.
The summary included insights from 371 responses covering various aspects such as rents, tenant and landlord behaviour, affordability, and the steps the Senedd could take to improve housing adequacy.
The Welsh Government noted the difficulty many face in affording rent, citing the need for more accurate data on rental affordability in Wales. Propertymark has advocated for a Welsh housing survey, akin to England’s, to enhance data collection and provide accurate statistics.
Many respondents, reflecting on Scotland’s experience where rent controls led to a decrease in the private rented sector, voiced concerns about replicating this model in Wales. According to Propertymark’s recent research, 95% of surveyed agents in Wales believe that rent controls would diminish housing supply.
Propertymark suggests that the Welsh Government should prioritize actions to address the housing supply shortage to improve housing adequacy. They propose improving collaborations between local authorities, property agents, and landlords, enhancing data collection, and supporting landlords in housing vulnerable populations and decarbonising properties.
Furthermore, Propertymark recommends utilising property portal websites to publish data on actual rents achieved at the time of letting, which would reflect local market characteristics more accurately.
The Welsh Government is preparing a White Paper consultation on housing adequacy, fair rents, and affordability set to be released in the summer. Propertymark expressed disappointment that the discussion of fair rents, potentially through rent controls, is included within the broader debate on adequate housing—a topic that enjoys widespread support 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.”
