The Welsh Government has formally rejected a proposal that would have allowed tenants to retain the final two months’ rent of their tenancy if served with a Section 173 notice, following a review of evidence gathered from stakeholders including Propertymark, Generation Rent, Shelter Cymru and others.
The Cabinet Secretary for Housing and Local Government, Jayne Bryant, confirmed the decision in a letter to the Senedd’s Local Government & Housing Committee, stating that the proposed measure posed multiple risks to tenants and landlords.
According to the Government’s findings, such a move could increase the risk of homelessness by undermining the intended six-month notice period and incentivising tenants to delay securing alternative accommodation.
Propertymark, which opposed the proposal throughout, welcomed the decision. Tim Thomas, policy officer at Propertymark, said: “We are pleased that the Welsh Government agreed with our concerns and have rejected the proposal.
“Propertymark have campaigned against this proposal right from the start. We immediately wrote to the Cabinet Secretary with our concerns and were one of the groups that took part in discussions with Welsh Government officials.”
He added: “We used the opportunity to highlight to the Welsh Government that if this proposal went ahead, it could result in less supply of privately rented accommodation in Wales, with the propensity of increased rents for tenants.
“This was not a practical solution for tenants, especially for those who are in receipt of benefits and pay their rent through managed payments.”
The Welsh Government report also flagged knock-on effects for housing benefit claimants, noting that if tenants were no longer legally liable to pay rent, they could face suspension of support payments and problems passing affordability checks for new tenancies.
Thomas said: “The proposal also gave no regard for the ongoing costs landlords have in sustaining tenancies including mortgage and insurance costs.
“There have been significant changes in recent years to legislation in Wales and we are keen to continue to work with the Welsh Government to ensure these bed-in and landlords, tenants and agents have time to understand and apply the existing rules before further reforms are looked at.”
