The National Residential Landlords Association is trying to head off the growing clamour for rent controls by setting out its own alternative in what it calls ‘a shadow White Paper’.
The calls for rent controls are particularly strong within Wales, where an informal pact between the ruling Labour Party and nationalists in Plaid Cymru has been based partly around the agreement to introduce rent controls for the private sector.
The NRLA White Paper, entitled “The Future of Private Renting in Wales”, sets out proposals including an analysis of why the introduction of rent controls would have a destructive impact on the Welsh private rented sector.
The NRLA commissioned an independent report by Capital Economics which suggests that Wales would need an average of just under 9,000 new private rented properties to meet housing targets.
Despite this, the policies of Welsh Government continue to dissuade investment, the association claims.
In addition to rent controls, the Labour/Plaid alliance wants longer standard AST durations and longer notice periods.
Only 11 per cent of landlords polled by NRLA said they planned to increase the number of properties they let out whilst far more, 37 per cent, plan to cut the number they rent out.
NRLA chief executive Ben Beadle says: “Our White Paper sets out what must be done in Wales to build a fairer, more inclusive private rental sector for both tenants and landlords and the damage that outmoded notions of rent control could have on the market.
“Ultimately, with affordability and supply issues continuing to dog the Welsh private rented sector, rent controls would exacerbate these ongoing problems and fail to provide a solution fit for the twenty-first century.
“Rather than focus on rents, the Welsh Government must target costs, making the provision of homes more affordable.
“A good start would be removing the controversial four per cent Land Transaction Levy on the purchase of additional homes which disincentivises investment in much needed homes.”
An official White Paper from the Welsh Government itself is due to be issue shortly, with rent controls likely to feature from 2023.
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The Welsh will end up with the rental market they deserve. Instead of looking at the small private landlord to sort out a national issue, why don’t you just BUILD more houses!!
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