The Welsh government has backed away from rent controls, saying that they would have a ‘detrimental effect’ on private renters and ‘lead to a reduction in the supply of rental properties in Wales’.

Welsh ministers appear to have listened to the NRLA, which submitted evidence to the Government that limiting rent rises to 3%, as Scotland has done, would mean landlords would raise rents to that level every year while, if they are given a free hand, they might not, therefore overall artificially raising rents for private tenants.

Instead of rent controls the white paper, called Adequate Housing, Fair Rents and Affordability, calls for a national index of live rents ‘being paid’ rather than the ‘asking rents’ that appear on portals such as Rightmove and Zoopla.

The Welsh government says making this data publicly available will “enable both current and prospective tenants to have a better understanding of market rents in their local area”.

Live rent feeds

To collect this data, it is proposed that agents or landlords will have to provide ‘live rent feeds’ via the Rent Smart Wales scheme, which would be published via a digital ‘rent map’ of Wales.

Jayne Bryant, cabinet secretary for housing and local government, says its proposals “set out further building blocks in our progressive path towards achieving housing adequacy for the people of Wales”.

She explains that improving affordability, habitability and accessibility in the PRS are all key aspects of housing adequacy and that understanding rents better will be the first step to shaping future policy.

The white paper also suggests other measures under a long-term housing strategy that include measures to support people renting with pets, and guidance around rent guarantors. It is now being consulted on until 31st January.