Letting agents say Welsh reforms ‘a dud’ as supply dwindles
Three years after the Renting Homes (Wales) Act became law, new NRLA research reveals it has had a mixed impact on the rental market.
The Wales Renting Homes Act has improved safety standards within the nation’s rental homes but has reduced supply – while almost all landlords and agents have questioned its value, it has been claimed.
The Act, implemented in December 2022, replaced section 21 evictions with the six-month section 173 notice, changed key possession grounds and converted all tenancies into prescribed “occupation contracts”.
9,000 properties disappear
Rent Smart Wales data shows the number of registered rental homes fell from a peak of 217,631 in mid-2022 to 208,732 by the year’s end, suggesting almost 9,000 properties disappeared from the sector during the transition period. Registrations have since recovered to 215,822, but growth is limited to just three areas – Cardiff, Swansea and Blaenau Gwent.
Analysis suggests that the reduction is not an indicator of ‘rogue’ landlords being pushed out, with the NRLA saying: “Sector contraction doesn’t necessarily mean only ‘rogue’ landlords leaving – often it’s smaller, compliant portfolio holders who exit first”.
Safety standards have risen, though, with the official Renting Homes Act Evaluation reporting strong compliance with smoke alarms, CO detectors and electrical safety checks.
Tenants also reported quicker repairs and improved communication. Many landlords, particularly those in professional bodies, have also invested heavily in legal support to ensure contracts meet the Act’s requirements.
As England’s Renters’ Rights Act begins implementation, Wales offers a three-year case study in rental reform.”
92% of landlords and agents responding to the evaluation, however, said the reforms had brought no positive impact. Many cited last-minute legislative changes, limited preparation time and the complexity of converting to occupation contracts. Membership of professional organisations emerged as the key differentiator in successful compliance, with 97% naming the NRLA as their most useful source of tenancy guidance.
An NRLA spokesperson says: “The timing is significant. As England’s Renters’ Rights Act begins implementation, Wales offers a three-year case study in rental reform. The Welsh experience suggests that well-intentioned regulation doesn’t automatically translate into better outcomes.”
There are also concerns that administrative burdens risk distancing landlords and tenants, enforcement remains under-resourced, and smaller compliant landlords are continuing to leave the sector.
For the most part, useless, but an excellent Job Creation Programme for Welsh Civil Servants, – Sir Humphrey Appelby would be proud!!
But as the statistics prove and exactly as i predicted 3 years ago, many Landlords, (Me included) have left in droves leaving increasing shortages of homes for Tenants, which in turn have resulted in rising rents.
Normally above inflation returns on investments would attract more investors into the market, but the fact that landlords are simply not prepared to be treated like dirt by The Welsh Government says it all.
So go back to the root of all this draconian legislation ; Despite their mealy mouth words, the Hard Left Socialist Welsh Government has a pathological hatred of private landlords and wont be happy until they have driven the last one out!
Next year’s elections in Wales will be interesting, With Labour languishing in 4th or even 5th in the polls, it looks like a battle between Plaid and the Greens combined, both even more Marxist than Labour and Reform, who may well dismantle some of these laws!