0:02 AM, 15th June 2023, About 9 months ago
A leading industry body has warned the Welsh government about the failures of rent controls.
Propertymark has responded to the Welsh government’s green paper consultation on housing adequacy and fair rents.
The document says that some countries have rules that regulate rents, such as rent caps, and asks tenants if they believe that rent controls are needed in Wales.
Timothy Douglas, head of policy and campaigns, at Propertymark, said: “Propertymark does not agree with rent controls as they disincentivise investment and lead to low stock levels and reduced property standards.
“We have also seen that they inflate advertised rents which are most recently evident in Scotland. The failures of rent controls have also been evidenced time after time again across Europe, and the United States.”
Mr Douglas says there needs to be focus from the Welsh government to satisfy tenants and landlords.
He said: “We believe that there must be a clear focus on introducing measures that satisfy tenant demand and ease landlord costs in order to increase the number of properties to rent and buy across Wales.
“We all want to see a thriving, safe, and secure private rented sector in Wales, but in order to do this, the Welsh government must ensure the shortage of housing is addressed and not inadvertently exacerbated.”
He added: “In recent years, tax and mortgage rate changes have squeezed the budgets of many landlords, and the shortage of housing supply fails to keep up with rising tenant demand, impacting rent levels, the cost of living, and the overall renting of property in Wales.”
The paper – ‘A Call for Evidence on Securing a Path Towards Adequate Housing’ – makes clear that the government is ‘interested in people’s experience of the cost of renting a home in Wales’.
The consultation period ends on the 15th September and the responses will ‘inform the development of a White Paper’ consultation next year – landlords, letting agents and tenants can submit their views online here.