First Scotland – now Wales calls for a rent freeze

First Scotland – now Wales calls for a rent freeze

8:11 AM, 5th October 2022, About 2 years ago 14

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Just a day after the Scottish Government unveiled its legislation for introducing a rent freeze, politicians in Wales are calling for the same measure.

Plaid Cymru says it has forced the Welsh Government to look again at enacting a rent freeze and a moratorium on evictions.

The party’s housing spokesperson, Mabon ap Gwynfor MS, has accused the Welsh Government of ‘dragging their heels’ over starting this ‘critical work’.

Last week in the Senedd committee for Local Government and Housing, Mr ap Gwynfor called for a ban on all evictions and for all rents to be frozen until after winter, as has been announced in Scotland.

In response, the Minister responsible for housing, Julie James MS, confirmed she was looking at options and was ‘actively in contact’ with the Scottish Government.

However, she had not yet reviewed their research.

Scottish Government to freeze rents and ban evictions

The announcement from the Scottish Government to freeze rents and ban evictions came on 6 September, and the Scottish measures are expected to remain in place until the end of March 2023.

Mr ap Gwynfor said: “The Labour Welsh Government is fiddling while Wales freezes.

“There’s no sense of urgency, and in the meantime, the cold fingers of winter creep ever closer.”

He added: “That work should have been commissioned and completed as soon as possible, and yet we find out that the Welsh Government are still at the stage of gathering evidence.

“Plaid Cymru saw this coming down the tracks and have repeated our calls at every opportunity.

“Numerous anti-poverty campaigners and charities, including Shelter Cymru have been calling for this.”

‘The Labour Welsh Government has been dragging its heels’

Mr ap Gwynfor continued: “Scottish Government clearly did their work. Meanwhile, the Labour Welsh Government has been dragging its heels.

“Time is very short, and Welsh Government urgently need to set out their timetable for when action could be taken, because winter will be on us before we know it.”

In First Minister’s Questions, Adam Price, Plaid Cymru’s leader, said that the coming winter could be the hardest on record with people facing stagnating wages and rising costs.

The party, which has a co-operation agreement with Labour in the Senedd, asked what more evidence was needed to prevent homelessness and urged the government to announce, ‘they will freeze all rents and by banning all evictions now.’

A rent freeze would not be a ‘panacea’

However, the First Minister Mark Drakeford warned that a rent freeze would not be a ‘panacea’.

He said that the Welsh government fears ‘unintended consequences’ which would see landlords reacting to a rent freeze by selling-up and leaving the market.

Mr Drakeford pointed out that ministers want to extend a planned extension to the notice for no fault evictions from two months to six months to existing tenants.

And, he added, that the Scottish Government had told him of their fears that there would be a ‘stampede’ by landlords to evict tenants – and there would be a collapse in the supply of homes to rent.

Instead, a White Paper will look at a proposal of rent controls as part of the agreement between Labour and Plaid Cymru.


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Comments

Jessie Jones

10:15 AM, 8th October 2022, About 2 years ago

Served my first eviction notice this week, for a property in England. I have just decided to reduce the size of my portfolio as a direct result of the threat of rent caps / freezes and eviction bans.
And as each fixed rate mortgage deal comes to an end I will be reducing even further.
Interest increases are one thing, and I would have been prepared to assess the profitability of each property as and when each mortgage deal was due for renewal. But with the possibility of rent caps and evictions bans, combined with interest increases, Section 24, and changes to EPC requirements, it would be foolish to leave the decisions until too late.
So some of my tenants are already having their homes repossessed, through no fault of their own, nor mine, but because of uncertainty being brought about by unclear housing policy.

Accommodation Provider

10:18 AM, 8th October 2022, About 2 years ago

What is all the fuss about ? Inflation is 11% which is the same as rent increase. Very normal. Rents go up just like salaries, costs of goods services and labour. So dont talk of a rent freeze unless you also freeze everything else, mortgage costs and insurance cost and salaries of civil servants and politicians. Journalists take note please. Start writing about cost of bread increasing and that that needs to be frozen or nationalised.

Chris Bradley

10:20 AM, 8th October 2022, About 2 years ago

I have had enough
I have three rental properties all no longer have mortgages, but they are my pension. They are quality refurbished properties, the rent is my income. The cost of living is going up, and with rent freezes, I will not be able.to increase my rent on the annual increase date. My tenants will be protected, but I am not. Much better to sell, less hassle, and live of the income of investing the capital released

Accommodation Provider

10:24 AM, 8th October 2022, About 2 years ago

Ehm.... its unconstitutional. It is my property so I decide as I run all the risks ! Let's decide to freeze civil servants salaries... I pay those as a taxpayer so that is for me to decide. Lets all stay in the real world. No freezing anything in inflationary time it is called theft.

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