Welsh landlord leasing scheme to end

A Welsh government scheme that guarantees landlords an income while councils manage their properties is set to close to new homes at the end of this year, the National Residential Landlords’ Association says.

Launched in January 2022, the programme allows landlords to lease properties to local authorities for between five and 20 years, with councils guaranteeing payments at Local Housing Allowance rates.

Grants of up to £5,000 are also available to improve a property’s general condition or EPC rating.

Around 700 homes across Wales are currently let through Leasing Scheme Wales.

Landlords seek clarity

The NRLA said: “There have been ongoing concerns about how the programme could be impacted by uncertainty over LHA rates – which are set by central government – but around 700 homes in Wales are currently successfully let via the scheme.

“This not only supports landlords and tenants but also helps local authorities looking for an alternative to temporary accommodation for those in need of a home.”

The NRLA added: “Many landlords using the scheme are concerned about what will happen when the funding runs out – and calling for clarity so that they can start to plan.

“If you are currently renting out properties via the scheme we would advise you get in contact with your local authority directly to find out what its plans are.”

Scheme closes to newcomers

The five-year programme was established and funded by the previous Welsh Labour government, with individual councils responsible for its management.

The new Plaid Cymru minority government has no plans to extend the scheme, and the Welsh government has confirmed that no further properties should be brought into it after December.

Properties already enrolled will continue to be supported under the existing arrangements.

Ministers are now working with local authorities on how the programme will be managed once the current funding period ends.

Councils consider next steps

Local authorities have been told to consider how they deal with new expressions of interest from landlords as the closure date approaches.

Without further government funding, the NRLA says the programme is unlikely to expand locally and landlords considering joining should contact their council about its longer-term plans.

The scheme has also faced uncertainty because the LHA rates underpinning landlord payments are set by central government.

Landlords already participating are being advised to speak directly to their local authority about what will happen to their arrangements.