Members of Propertymark are advising the Welsh government to avoid implementing rent controls, pointing to the negative impact such measures have had on the rental market in Scotland.
Rather than introducing rent controls, they suggest enhancing cooperation among local authorities, real estate agents, and landlords, improving market data, and offering more support to landlords who accommodate vulnerable and aging populations and who aim to make their properties more eco-friendly.
The Welsh government is in the process of drafting a White Paper consultation that will consider housing adequacy, fairness of rent prices, and overall affordability, which is expected to be presented this summer.
Propertymark is disappointed to see the issue of ‘fair rents,’ which might include rent controls, being mixed into the broader conversation about housing adequacy—a topic with widespread backing in the housing industry.
Tim Thomas, a policy and campaigns officer at Propertymark, comments, “It’s concerning that the harmful idea of rent controls is being discussed within the broader, positive debate about legislating for adequate housing, which we are in favor of.
“Given the negative consequences seen in Scotland’s rental sector due to rent controls, we think it would be unwise for Wales to take the same path. Alternatively, the Welsh government should concentrate on reinforcing current laws, removing obstacles blocking new adequate housing construction, and enhancing their data gathering methods.
“A more balanced approach would include encouraging the construction of affordable housing in the private rental market through forward-thinking tax policies.
“For instance, the Welsh government could consider lowering the Land Transaction Tax for properties owned by landlords or providing an exemption on the 4% tax Levy for additional homes if they are new, long-term rental properties.
“Propertymark is committed to collaborating with the Welsh government to develop better strategies to construct adequate housing and sidestep rent controls.”
These points were made in the ‘Summary of Responses to the Green Paper Call for Evidence on Securing a Path towards Adequate Housing – including Fair Rents and Affordability.’
The Welsh government received 371 responses addressing various aspects including rent prices, tenant and landlord actions, affordability issues, and proposals on how the Senedd can improve housing adequacy, with insights on how to achieve this goal in Wales.
