The connection between rising volumes of red tape in the private rental sector and landlords quitting as a consequence appears to have been proven in one part of the UK.

ARLA Propertymark says more than twice as many landlords in Wales are selling their buy to let units when compared with the rest of the UK – on average, five per letting agency branch in the Principality, compared to two per branch in the rest of the UK.

Propertymark’s chief executive Nathan Emerson insists this is down to regulatory changes affecting landlords.

“Wales is seeing the greatest number of landlords exiting the sector and interestingly, this could come as no surprise to many agents and landlords.

“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords in Wales will be faced with further regulatory pressure.

“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.”

The Renting Homes (Wales) Act will come into force from July 15 and this increase the Section 21 Notice period to six months, with no notice served at all until six months into the contract. 

This means that tenants have a right to live in the rental property for at least a year, irrespective of their payment record or behaviour.

The Act will replace assured shorthold tenancies with a ‘standard occupation contract’ for private landlords, along with minimum repair standards set out in the contract.

Landlords also have to send tenants a written statement setting out the rights and responsibilities of both the landlord and contract holder – as the tenant – will be called within 14 days of moving in.