Homelessness Bill adds pressure as Propertymark calls for pause on further legislation in PRS

An industry body is urging the Welsh government to pause any further legislation for the private rented sector.

In response to a consultation on the Homelessness Bill, Propertymark warns the talk of rent controls is deterring investors from the sector.

Although the Welsh government has not endorsed rent controls, it has not ruled them out either.

Considerable financial strain

The Homelessness Bill, aims to improve access to social housing, but the National Residential Landlords Association (NRLA) warns the bill could create more problems than it solves.

Propertymark says it welcomes the proposals to improve access to social housing but warns many councils in Wales are already under financial strain, and the new measures will only add to that pressure.

The industry body said: “Many local authorities in Wales are under considerable financial strain especially in housing support and homelessness prevention teams. While the provisions in the Bill are welcome, the added responsibilities under the bill, for example, earlier interventions, broader eligibility and the production of person centres plans is likely to increase strain on resources further.

“In our response to the Senedd Finance Committee, we called for ‘fair funding; for Welsh local authorities due to the increase in demand from enforcement of The Renting Homes (Wales) Act, the responsibilities of new building safety legislation and this Bill will increase the need for additional revenue for local authorities.”

Pause on any further legislation in the private rented sector in Wales

The industry body also warns the Welsh government that further changes could risk destabilising the private rented sector and say the talk of rent controls are causing uncertainty.

Propertymark says: “We welcome any provisions in the bill to improve the allocation of social housing to those who need it most. Many of these people are currently living in the private rented sector and might be better served in social housing. The PRS has also undergone significant increased legislation mainly from the Renting Homes (Wales) Act 2016.

“Once the bill has passed, we would strongly recommend that there is a pause on any further legislation in the private rented sector and the prospect of rent controls are discontinued as this is proving a concern for landlords looking to invest.

“The private rented sector is highly regulated, and the Welsh government must turn its attention to supporting the most vulnerable into suitable long-term housing and improving the enforcement of existing legislation in the private rented sector.”

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