Homelessness bill could create ‘more problems than it solves’ claims NRLA

The National Residential Landlords Association (NRLA) is warning that the Welsh government’s homelessness bill will put greater strain on landlords and local authorities.

The organisation welcomes the Welsh government’s proposals to improve access to social housing but warns the bill could create “more problems than it solves”.

The bill brings major changes by scrapping the ‘intentionality test’, extending the homelessness risk period from 56 days to six months, and adding a ‘deliberate manipulation of the system test’.

Prevent tenants from accessing support

The NRLA says it has concerns over the removal of the intentionality test, which currently allows councils to consider whether someone has deliberately made themselves homeless.

The organisation warns on its website: “The removal of the ‘intentionality test’ depends on there being a ‘robust housing supply’, a term the Welsh government has not defined. With private rented stock declining in many areas of Wales, there is a real risk that this threshold will not be met.”

The NRLA is also calling for clear guidance on how the new ‘deliberate manipulation test’ will work in practice.

While full government guidance is still awaited, the test is expected to assess whether someone has acted in a way to appear homeless in order to access housing support they might not otherwise qualify for.

This could include intentionally accruing rent arrears or deliberately refusing alternative accommodation.

However, the NRLA warns that the test could have unintended consequences for landlords, especially those with tenants in rent arrears.

The organisation said: “We have highlighted the need for guidance on the ‘deliberate manipulation test’, particularly regarding rent arrears and tenant behaviour during repossession proceedings.

“Our concern is that landlords acting in good faith could trigger a situation where tenants are prevented from accessing support.”

A higher proportion of tenants in Wales being found intentionally homeless

According to the NRLA, Welsh landlords are less likely to seek repossession than their English counterparts, they are more likely to use breach-of-contract grounds rather than the Section 173 “no-fault repossession route”.

Since the Renting Homes (Wales) Act came into force, longer notice periods have pushed landlords toward fault-based routes to deal with rent arrears faster.

The organisation warns: “This has led to a higher proportion of tenants in Wales being found intentionally homeless due to fault-based evictions, despite little evidence suggesting that arrears or breaches are more common in Wales.

“We are calling for robust guidance to ensure that tenants and landlords are encouraged to work together to find a sensible outcome to repossession, and to ensure that the deliberate manipulation test is not applied widely to possession claims in Wales.”

Greater pressure on landlords

The NRLA says they will continue to work with the Welsh government on the bill but must see clear safeguards for landlords put in place.

The organisation says: “We support the Bill’s intentions but without strong statutory guidance and a clearly defined housing strategy, the proposals risk placing greater pressure on landlords, tenants, and local authorities alike.

“We will continue to campaign for policies that balance tenant support with protections for responsible landlords.”

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