NRLA criticises Welsh government’s “absurd” tenant compensation proposal
12:01 AM, 14th January 2025, 1 year ago
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The NRLA has slammed the Welsh Government’s “absurd plans” to pay compensation to tenants.
A recommendation from the Senedd’s Housing and Local Government Select Committee could force landlords to pay tenants up to two months’ rent as compensation if they need to sell or move back into their property.
The NRLA has criticised the move, calling it a “step too far” that undermines confidence in the Welsh private rented sector.
Absurd that a landlord should have to pay compensation to get their property back
Ben Beadle, chief executive of the NRLA, says the Welsh government is failing to understand the challenges faced by landlords.
He said: “It is absurd that a landlord should have to pay compensation to get their property back, and the recommendation demonstrates a lack of understanding as to the reasons why landlords may need to do so.
“If the Welsh government is so concerned about losing private rented housing stock and the impact this has on renters, they must ensure housing providers have confidence to remain and invest in the supply of high-quality rental property. Ideas such as these serve only to undermine the little confidence that remains in the Welsh private rented sector.”
However, the NRLA does support some of the recommendations from the select committee, including measures to improve property standards and the development of a long-term strategy for the Welsh private rented sector.
Decision will be made in April 2025
The Welsh Government will decide in April this year whether two months’ rent compensation for tenants facing eviction is feasible.
The select committee’s report claims that two months’ rent compensation could help prevent homelessness and improve tenants’ wellbeing.
Tags:
eviction compensation, housing policy, housing stock, Landlord Challenges, landlord compensation, NRLA, private rental market, Private Rented Sector, Property investment, rent compensation, Senedd, tenant compensation, welsh government, Welsh housing
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Short let comfort but management company pain?
Member Since March 2023 - Comments: 1506
10:19 AM, 14th January 2025, About 1 year ago
This is absurd, in the past I have gifted long term tenant 1 to 3 months rent when they left my property – but this should be up to the landlord
Member Since October 2017 - Comments: 101
1:34 PM, 14th January 2025, About 1 year ago
If I could put my property on the market, the tenant would facilitate viewings and move out before exchange, then I would be happy to pay them a month’s rent on completion. As it is, it isn’t feasible to put it on the market until the tenant has gone as who knows if/when they might leave.
Member Since February 2024 - Comments: 71
2:04 PM, 14th January 2025, About 1 year ago
If I was selling I would probably give a long term tenant some compensation. However if it became compulsory to do so, I think it should have conditions attached; such as rent up to date, no damages etc, and only be given once tenant has left and keys returned. Similar to return of deposit.
Note we already have to give 6 months notice, not 2 months as England.
Regarding the measures for improvement in property standards; in Wales landlords have to be registered with Rent Smart Wales, and property standards have to meet with Renting Homes FFHH (Fitness for human habitation) (Wales) Regulations 2022. This lists 29 “matters” to be complied with.
Welsh landlords have already had major changes in recent years with the Renting Homes Wales Act, so anymore significant changes again could result in more leaving the sector.
We have standard contracts rather than tenancy agreements, the tenants are now Contract Holders. And for existing tenants we had to issue Converted Periodic Contracts, which combined terms of both old tenancy agreement and the new Written Model Contract. This resulted in a 47 page document, which you really need a law degree to make sense of!
At least we still (for now anyway) have a version of S21, now a Section 173 or RHW18, 6 months notice to be given.
It seems to be tilted toward benefitting the “Contract holder” (tenant) rather than the landlord, who of course has to comply or faces penalties.
To be fair, a lot of the stuff is good, Standard forms etc, but a lot more admin and paperwork.
I do not know if this system is easier for the courts to deal with.
Member Since June 2019 - Comments: 2
1:51 PM, 15th January 2025, About 1 year ago
Can the 2 months compensation go towards rent arrears and paying for damage? Realistically, I would only ask a tenant to leave if they had caused an issue in the first place. If in arrears then im unlikely to see the money anyway