It is three years since the Renting Homes Act in Wales came in and introduced new standards and licensing for landlords but research suggests there have been negative consequences, which could provide a lesson for the Renters’ Rights Act implementation in England.
Research by the National Residential Landlords Association (NRLA) highlights that there are now fewer homes to rent in most parts of Wales
Before the Act came into force, the NRLA said, the number of rental properties registered with Rent Smart Wales peaked at 217,631 in mid-2022. By the end of that year, the figure had dropped to 208,732 – suggesting nearly 9,000 properties have been lost from the sector.
Since then, registrations have recovered to 215,822 but growth has been confined to just three areas of Wales – Cardiff, Swansea and Blaenau Gwent.
In some good news, data from the Renting Homes (Wales) Act Evaluation shows that smoke alarms, carbon monoxide detectors, and electrical testing requirements are being met consistently across both social and private sectors.
Several tenants said the Act had been “a catalyst for prompt repairs,” with landlords responding to maintenance issues and tenants feel better able to engage with their landlord.
Responsible landlords are going to great lengths to ensure full compliance, particularly around contract details, with many investing in legal advice to get things right
However, of the landlords and agents that responded a massive 92% said there had been no positive impacts at all, with 3% of this same group saying the Act had a negative impact.
The NRLA said: “The evidence suggests that the transition process which saw frequent delays, last minute changes to legislation and an overall lack of time for landlords to prepare for the conversion process was extremely challenging for some.
“The evaluation found a clear divide, with landlords who are members of organisations like the NRLA demonstrating significantly better awareness and compliance than those operating independently, with membership of professional bodies continuing to be the key differentiator in navigating the Act successfully. The NRLA was found by 97% of respondents to be “the most useful source of support and guidance on tenancies and contracts.”
The Welsh experience suggests that well-intentioned regulation doesn’t automatically translate into better outcomes, the NRLA said, adding: “With England now embarking on similar reforms, perhaps the most important lesson from Wales is this: regulation alone doesn’t fix housing. Without adequate supply, proper enforcement resources, and clarity about roles and responsibilities, even the best-intentioned reforms risk unintended consequences.”
https://www.nrla.org.uk/news/landlords-wales-renting-homes-act-25
