Propertymark challenges Welsh government over proposed rental reforms

An industry body has urged the First Minister of Wales not to press ahead with plans to introduce rent controls and abolish no-fault evictions.

Propertymark has written a letter to First Minister Rhun ap Iorwerth ahead of the proposed Welsh Rental Bill 2027, which is set to reshape the private rented sector in Wales.

Under the proposals, the Welsh Government would strengthen the rights of private tenants.

Firmly opposed to rent controls

In the letter, Propertymark points out that introducing rent controls will do more harm than good.

The industry body said: “We remain firmly opposed to the introduction of rent control measures.

“International experience consistently demonstrates that rent controls reduce investment in the private rented sector, discourage the supply of new rental homes, reduce housing choice for tenants, and can ultimately lead to higher rents in the longer term as supply becomes constrained.

“At a time when Wales continues to face significant housing pressures, policies should encourage investment and increase the availability of good quality rented accommodation rather than risk reducing it”.

Strike appropriate balance

In Wales, landlords can regain possession of a property without having to prove tenant fault under Section 173 of the Renting Homes (Wales) Act 2016. However, they must provide tenants with six months’ notice and cannot serve notice during the first six months of an occupation contract.

Propertymark argues that the existing framework strikes the right balance between protecting tenants and giving landlords the confidence they can recover possession of their property when necessary.

In its letter, Propertymark says: “We think that the existing possession framework under the Renting Homes (Wales) Act 2016 already strikes an appropriate balance between providing tenants with security of tenure and allowing landlords to regain possession of their property where necessary.

“The six-month notice period required under Section 173 provides tenants with significant protection while preserving landlords’ confidence that they can recover possession should their circumstances change. Maintaining this balance is essential to ensuring that landlords remain willing to invest in and continue providing homes within the Welsh private rented sector.”

Practical implications must be considered

The Senedd legislative programme also includes plans to collect mandatory rent data.

Under the proposals, landlords and letting agents would be required to submit private rental data to help the Welsh Government build a clearer picture of rents across Wales.

However, Propertymark has raised concerns over the system, claiming the practical implications must be “carefully considered”.

The letter says: “For larger letting agencies, the sheer volume of tenancy and rental data they manage will make extracting, formatting and submitting information a significant administrative undertaking.

“Conversely, many smaller agencies will lack the staffing, technical capability and financial resources to comply with complex reporting requirements. Any new obligations must therefore be proportionate and designed to minimise the burden on businesses of all sizes”.