Rent controls in Wales opposed by letting agents

Rent controls in Wales opposed by letting agents

0:01 AM, 10th May 2024, About 2 weeks ago

Text Size

Propertymark members in Wales have made their disapproval of rent controls clear after the Welsh government published a summary of responses to their Green Paper on housing.

The government wants to improve housing affordability in Wales, and it received more than 300 responses to a consultation.

It covered issues like rent costs, tenant behaviour, and how to increase the supply of good quality housing.

‘Prospect of damaging rent controls’

Tim Thomas, the 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.”

He added: “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.”

The organisation says the government could reduce levels of Land Transaction Tax for landlords’ properties.

Or there could be an exemption of new long-term rental properties from the 4% LTT levy on additional homes.

Rent controls for landlords in Wales

On the issue of rent controls for landlords in Wales, Propertymark argues that rent controls in Scotland have led to landlords leaving the private rented sector.

It has also commissioned research showing that 95% of Welsh property agents believe rent controls would reduce housing supply.

Now, Propertymark is urging the Welsh government to focus on increasing the supply of affordable homes instead.

The organisation believes this can be achieved by improving relationships between landlords, agents and local authorities.

It also suggests the government collects better data on rent prices.

A White Paper on housing policy will be published this summer but it’s not yet clear if rent controls will be included in the government’s final proposals.


Share This Article


Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now