Welsh government plans stronger tenant rights

The Welsh government is preparing legislation to strengthen the rights of private tenants, with further restrictions on no-fault evictions expected later in the Senedd term.

First Minister Rhun ap Iorwerth included the proposed bill in the first phase of the government’s new legislative programme, outlined in a statement to the Senedd.

The initial legislation will focus on improving protections for people living in privately rented homes.

More substantial housing reforms are then planned during the four-year Senedd term.

Strengthen tenant rights

Mr ap Iorwerth said: “The value my government places on fairness has motivated us to take action to strengthen the rights of tenants in the private rented sector.

“We want to protect and enhance Wales’s unique sense of community.”

He added: “We will proceed with the development of a community right-to-buy scheme and provide the legislative basis to enable eligible community groups to nominate and register valuable community assets and be given the right of first refusal when the owners decide to sell.

“This is a far-reaching and ambitious programme that reflects our core values as a government, for the benefit of all the communities of Wales.”

Ban no-fault evictions

The substantial housing reforms are expected to include measures intended to improve housing affordability, make rents fairer and restrict the use of no-fault evictions by private landlords.

The Welsh government is also developing proposals for a legal right to adequate housing, which would place its wider housing ambitions on a statutory footing.

A separate Community Right to Buy bill will allow eligible local groups to identify and register assets considered valuable to their area.

Where the owner of a registered asset decides to sell, the community would be given first refusal.

The announcement does not set out which properties would qualify or how the purchase process would operate.

Further legislation will introduce what the government calls rural proofing, requiring the needs of rural communities to be considered when policies are developed.

Industry reaction

Tim Thomas, senior policy and campaigns officer at Propertymark, said: “Following the statement from the Welsh First Minister outlining the programme for government over the next 18 months, Propertymark will be monitoring and engaging closely on the development of proposals to collect rental data as well as a Tribunals Bill and Tax Maintenance Bill, which will likely impact housing and property in Wales.

“The Welsh government is also looking at fair rents and tackling so-called no-fault evictions. This will come as a surprise to property agents and landlords working across Wales because the issue of fair rents was consulted on recently, and we know the damage that rent control measures can do, as we have seen in Scotland.”

He added: “It is also surprising that after the introduction of the hugely significant and game-changing tenancy regime under the Renting Homes (Wales) Act, a system designed by Wales for Wales, a Plaid government is looking to Westminster for inspiration to layer further burdensome legislation on landlords and agents in Wales. The current rules strike the right balance, and it’s vitally important that policymakers look at the evidence and prioritise policies that encourage investment, increase housing supply, and support a healthy, sustainable private rented sector that works for both tenants and landlords.

“Importantly, the First Minister referenced greater enforcement powers for Rent Smart Wales. Property agents want to see the right type of enforcement, but also a licensing regime that is accountable and more transparent in its strategic approach.”

Chris Norris, Chief Policy Officer at the National Residential Landlords Association, said:“Whilst on the face of it this is an ambitious approach to rental reform, at this stage the specifics of what the Welsh government proposes to do are unclear.

 “Whatever changes are brought to the table it is crucial that the government clearly sets out what grounds landlords can use to take back possession of their rental properties, particularly when tenants display anti-social behaviour or when there is a change in a landlord’s financial circumstances.

 “We look forward to engaging with the Welsh government over the coming months to provide our views on how legislative changes need to work in the interests of Welsh landlords and tenants.”