Propertymark warns against policies that could drive Welsh landlords out

Propertymark has urged the Welsh government to avoid policies that could deter investment, warning against the introduction of rent controls.

Responding to the Senedd’s local government, housing and planning committee consultation on priorities for the Welsh housing sector, the industry body said increasing the supply of homes should be the top priority, alongside sustaining a well-regulated private rented sector.

The warning comes as the Welsh First Minister Rhun ap Iorwerth has hinted at introducing rent controls and pledged to build 20,000 social homes by 2030.

Oppose rent controls

Propertymark has warned the Welsh government that introducing rent controls would reduce supply and deter investment.

The industry body said: “The Committee should recommend prioritising measures that stimulate investment in the housing market rather than introduce policies that risk constraining supply. Propertymark does not support the introduction of rent controls in Wales.

“Evidence from Scotland, together with wider international research, indicates that rent controls can reduce the supply of privately rented homes, discourage investment, reduce property standards over time and ultimately restrict tenant choice. Propertymark’s evidence to the Senedd has consistently highlighted that improving affordability is best achieved by increasing housing supply rather than capping rents.

“Research commissioned by Propertymark also found that 95% of letting agents in Wales believe rent controls would reduce the supply of privately rented homes.”

No thoughts given to landlords

The industry body added that the Welsh government must do more to support the private rented sector.

Propertymark said there should be a pause on further significant legislative changes to allow time for the impact of existing reforms to be properly assessed.

Propertymark also ran a small focus group, finding some Welsh landlords were concerned about proposals to end no-fault evictions. Six agents said their landlords had occasionally relied on Section 173 notices to regain possession over the past three years.

Others said landlords rarely or never used them, suggesting landlords are either keeping tenancies going or relying on grounds-based approaches.

One agent said many landlords in Wales were leaving the PRS because they feel legislation “favours tenants and gives no thought to landlords”.

Increase housing supply

According to the Welsh government, around 8,700 additional homes are needed each year over the next five years. Yet just 4,631 new homes were completed in 2024–25.

Propertymark says the Welsh government needs to adopt a pro-growth approach to property taxation to help increase housing supply.

The industry body said: “The Committee should prioritise scrutinising Welsh government policies to support the delivery of new homes through a more efficient and effective planning system, encourage investment across all housing tenures, and remove barriers that constrain housing development.

“The Welsh government should adopt a more pro-growth approach to property taxation. We recommend reviewing Land Transaction Tax (LTT), including reducing the higher rates payable on additional residential properties, to encourage investment in the private rented sector and increase the availability of homes to rent.

“We think taxation should support, rather than discourage, responsible landlords who provide much-needed housing across Wales.”