news | 2 months ago | Jodie Bradley

Welsh rent controls forcing rents up

The NRLA has warned that the threat of rent controls – coupled with the introduction of the Renting Homes (Wales) Act – has seen rents in Wales soar, during a session with Senedd's Local Government, Housing and Communities Committee on Wednesday 13th March as part of its inquiry into the PRS.

Steve Bletsoe, operations manager for Wales at the NRLA, told the committee that from having the slowest rising rents in the UK, Wales is now recording the fastest rising as a result. 

He stressed that the best way to offset these challenges is not to introduce rent controls but to encourage the supply of homes to rent.

He told the Senedd: “Rents went up over 10% the month the consultation on rent controls happened…it scared a lot of people into either putting their rents up above inflation or exiting the market completely.

“If you increase the supply — and I mean good quality supply — the market dictates rents. 

“Governments don’t need to intervene; the market will dictate it.”

Giving evidence as part of the committee’s PRS inquiry, Steve stressed the need for the government to support existing landlords as well as encouraging new investment something that has fallen dramatically over the last 12 months.

Steve also used the session to call for an urgent review urgent review of Land Transaction Tax (LTT) to further stimulate growth in the sector.

He told the committee about the decades of under-provision of social housing that have seen more and more households look to the private sector to home, despite the fact PRS landlords are not always equipped to deal with the unique challenges facing social tenants.

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