Welsh government urged to support landlords in upcoming Budget

The Welsh government must support investment in the private rented sector and avoid further regulation in the upcoming Welsh Budget.

Propertymark has responded to the Senedd’s consultation ahead of the publication of its Draft Budget on 17 November 2026.

The industry body is calling on the Welsh government to increase housing supply and provide financial support to landlords to help meet EPC C targets.

Regulation must provide value for money

As previously reported by Property118, data from Rent Smart Wales reveals small landlords are leaving the sector.

Propertymark said regulation must strike a balance between raising standards and supporting landlords.

The industry body said: “Propertymark recognises the important role Rent Smart Wales has played in raising standards and professionalism within the private rented sector.

“However, regulation must provide value for money and should not place disproportionate costs on responsible landlords and agents. In addition, licensing fees, training requirements and wider compliance costs ultimately increase the cost of managing property.

“This is particularly important at a time when the private rented sector is already under pressure and tenants are experiencing affordability challenges.”

Landlords face higher costsa

In Wales, when you purchase an additional property, such as a buy-to-let or second home, worth £40,000 or more, you must pay the higher residential LTT rates.

The higher rates of Land Transaction Tax (LTT) applied to additional residential properties create a substantial upfront cost for property investors and landlords. The current higher rates start at 5% and rise to 17% at the highest band.

Propertymark said: “We recognise that the policy intention behind higher rates includes discouraging second-home ownership.

“However, the policy also applies to many landlords and investors providing homes for rent.

“The key issue is not necessarily whether buy-to-let purchases have fallen. Rather, the tax system changes the relative attractiveness of different housing choices. It can make it cheaper and easier for some people to move into owner-occupation while making it more difficult and expensive to provide and remain in the private rented sector. This has consequences for both sides of the market.

“Landlords face higher costs when purchasing property, while tenants who remain in the rental sector may face higher rents as landlords seek to recover increased costs.

The Welsh government should therefore consider the effect of taxation on the whole housing market rather than treating owner-occupation and renting as separate policy issues.”

Landlords need financial support to meet EPC C targets

In Wales, the government has proposed all private rented properties must meet EPC C targets by 2030.

Propertymark warns landlords could leave the market without financial support to meet the cost.

The industry body said: “Many properties in Wales are older and more difficult and expensive to retrofit, particularly older solid-wall homes in rural and former industrial communities. Without realistic financial support, there is a risk that some landlords will choose to leave the private rented sector rather than make significant investment in properties.

“The Welsh government should therefore prioritise grants, low-interest finance and practical advice to support landlords and homeowners with retrofit, while ensuring that energy-efficiency policy does not unintentionally reduce the supply of rented homes.”