Call for government action as landlord numbers slide

Call for government action as landlord numbers slide

0:05 AM, 21st February 2025, About 2 months ago 9

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The Welsh government is being urged to implement fresh strategies to boost the availability of homes in the private rented sector as landlord numbers fall.

The call is being made by Propertymark which points to new figures from Rent Smart Wales.

It reveals that 17 out of 22 local authorities in Wales recorded fewer landlords between January 2020 and January 2025, with a total loss of 1,107 across the sector.

This downturn coincides with the introduction of the Renting Homes (Wales) Act.

Landlords will exit the market

Propertymark’s policy and campaigns officer, Tim Thomas, said: “Propertymark has been supportive of the Welsh government’s aims in regulating the private rented sector to make it fairer for all.

“However, there must be a balance, otherwise good responsible landlords will exit the market and those that remain will be forced to increase rents to cover their escalating costs.”

He added: “The shrinkage of the private rented sector, as proven by this recent Rent Smart Wales data, shows that the Welsh government must strongly consider the impact future legislation will have on the sector.

“Given these concerning figures from across most Welsh communities, the government must follow our call for pro-growth taxation and reduce Land Transaction Tax for landlord investors.”

Expand the rental housing pool

Propertymark recently submitted its views to the Senedd finance committee’s budget consultation, recommending initiatives to expand the rental housing pool.

However, the finance secretary Mark Drakeford unveiled a 1% hike in Land Transaction Tax for those acquiring extra properties in Wales, a move that has sparked concern.

Addressing a separate Senedd investigation into the PRS, the Welsh Government expressed support for a proposal allowing tenants facing no-fault evictions to retain their final two months’ rent as compensation.

Propertymark has argued that piling more financial burdens onto landlords, who are struggling with rising taxes, higher borrowing costs and maintenance expenses, could shrink the stock of PRS homes.

This lack of choice will drive up tenant costs, it says, and warns that increasing housing availability is the best way to stabilise rents and prevent market imbalances.

Propertymark opposed rent caps

As part of the Welsh government’s Fair Rents and Adequate Housing Stakeholder Group, Propertymark has successfully opposed rent caps.

That stance was vindicated by their absence from the recent White Paper on housing policy.

Propertymark warns that rent controls could have exacerbated the exodus of landlords, as evidenced by the Rent Smart Wales statistics.


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Cider Drinker

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9:31 AM, 21st February 2025, About 2 months ago

The PRS is shrinking. Of that there can be no doubt.

At the same time, the number of renters is increasing.

The death of the PRS will be a slow, painful one.

Many landlords looking to escape the toxicity of government will want to wait until tenants leave. Tenants with landlords that die will soon be evicted by those who inherit property.

Osprey

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10:15 AM, 21st February 2025, About 2 months ago

The new renting Homes Wales act already allows a 6 month notice period for so called no fault evictions. That was supposed to ease the pressure on tenants when faced with such a notice.
If they think that making landlords compensate tenants with not paying their last 2 months rent as well as the 6 months notice, then I'm afraid they are in for shock.

Landlords are already selling properties but the Welsh government have their heads in the sand claiming they have no evidence to support this. Any further regulation like that proposed will decimate the PRS in Wales.

Clowns!!!

Chepstow Landlord

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17:20 PM, 21st February 2025, About 2 months ago

I am fortunate to have an excellent tenant but If the 2 month compensation comes in, I will simply have to up the rent to cover this additional amount and explain to the tenant why I am doing it.

Scott Robertson

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18:13 PM, 21st February 2025, About 2 months ago

What's to stop insisting that the amount of 2 months rent are include to xxxx amount monthly then the rent drops to what it should be. Tarring everyone with the same brush is governmental bullying and price gouging legally.
No PRS guess what? A civil emergancy even greater than what it is. Elected government officials will need to reclaim that responsibility they've farmed out to the private sector and start earning their ludicrous benefits and allowances. No separate quango oversight to take the pressure of shifting blame.

Paul Essex

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9:15 AM, 22nd February 2025, About 2 months ago

It would be interesting to see what percentage of the Welsh PRS that represents.

Cider Drinker

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11:27 AM, 22nd February 2025, About 2 months ago

Reply to the comment left by Scott Robertson at 21/02/2025 - 18:13
You’re not allowed to front load rent.

I’d take a risk-based approach.

On average, my tenants have been with me for 13 years. Adding 1% to the rent would cover me paying 2 months rent when they leave.

Right now, I’d happily gift them 4 free months if they were to leave. I’d sell.

Godfrey Jones

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11:23 AM, 24th February 2025, About 2 months ago

Just like everything else this Gov does there is an alterior motive.
Have you not wondered why we are so keen to back Ukraine for instance? It now transpires there are billions of £££ in rare earth metals. Or why they are pushing or even forcing us to buy EV's when no one wants them, sales accross Europe are declining by 6% and manufacturers are either leaving the UK, laying off workers, or withdrawing funding; the latest being BMW who have just withdrawn £600 millions of investment planned for EV's.
Just the same with PRS - It doesn't take a genius to work out that as Landlords like myself leave and sell up the pool of available properties dries up and the natural laws of supply and demand dictate that Tenants will pay more and there will be more Tenants queing for every property. Yet at the same time illegals are being allowed into the Country in unsustainable numbers - obviously requiring homes. The Conservatives started the War On Landlords and Labour are exacerbating it WHY??? Why do we need to reach a made up rating of EPC rating of 'C' for instance when we only represent a small fraction of the total number of homes in the UK? Why doesn't it include every home? Why are we being forced to fit heat-pumps when MP's won't have them in the Houses of Parliament due to their ineffectiveness and noise? And finally how can any of us trust a Gov that has broken 19 soon to be 20 of its 21 manifesto pledges??? I'm out of now yet I still have nightmares.

Godfrey Jones

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12:24 PM, 24th February 2025, About 2 months ago

Just like everything else this Gov does there is an alterior motive.
Have you not wondered why we are so keen to back Ukraine for instance? It now transpires there are billions of £££ in rare earth metals. Or why they are pushing or even forcing us to buy EV's when no one wants them, sales accross Europe are declining by 6% and manufacturers are either leaving the UK, laying off workers, or withdrawing funding; the latest being BMW who have just withdrawn £600 millions of investmentinto EV's.
Just the same with PRS - It doesn't take a genius to work out that as Landlords like myself leave and sell up the pool of available properties dries up and the natural laws of supply and demand dictate that Tenants will pay more and there will be more Tenants queing for every property. Yet at the same time illegals are being allowed into the Country in unsustainable numbers - obviously requiring homes. The Conservatives started the War On Landlords and Labour are exacerbating it WHY??? Why do we need to reach a made up rating of EPC rating of 'C' for instance when we only represent a small fraction of the total number of homes in the UK? Why doesn't it include every home? Why are we being forced to fit heat-pumps when MP's won't have them in the Houses of Parliament due to their ineffectiveness and noise? And finally how can any of us trust a Gov that has broken 19 soon to be 20 of its 21 manifesto pledges???

Reluctant Landlord

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