Two prominent trade bodies representing elements of the private rental sector are fighting back against the latest attempt to impose rent controls.
Propertymark’s head of policy and campaigns, Timothy Douglas, says: “Propertymark does not agree with rent controls as they disincentivise investment and lead to low stock levels and reduced property standards. We have also seen that they inflate advertised rents which is most recently evident in Scotland.
“The failures of rent controls have also been evidenced time after time again across Europe, and the United States.
“We believe that there must be a clear focus on introducing measures that satisfy tenant demand and ease landlord costs in order to increase the number of properties to rent and buy.”
And Ben Beadle, chief executive of the National Residential Landlords Association, adds: “Let’s be clear, rent controls would serve only to decimate the sector further and would be a disaster for tenants, when so many are already struggling to find a place to rent.”
Their angry responses follow the publication of a so-called Green Paper by the Welsh Government - majoring on what it calls ‘fair rents and adequate housing’ - which hints at the possible introduction of rent controls in the private sector in Wales.
The Welsh Government has now started a formal consultation and both Propertymark and the NRLA want their members to make it clear that rent controls should be off the agenda.
Timothy Douglas continues: “We all want to see a thriving, safe, and secure private rented sector in Wales, but in order to do this, the Welsh Government must ensure the shortage of housing is addressed and not inadvertently exacerbated.
"In recent years, tax and mortgage rate changes have squeezed the budgets of many landlords, and the shortage of housing supply fails to keep up with rising tenant demand, impacting rent levels, the cost of living, and the overall renting of property in Wales.
“We will continue to engage with the Welsh Government with these warnings and encourage agents operating in Wales to respond to the Welsh Government’s Green Paper."
In the recent past in Wales the Labour Party - which controls the government - voted against freezing rents, despite the Scottish Government backing such a move.
Late last year Welsh Labour’s housing minister, Julie James, said rent freezes would have “unintended consequences” and that Scotland’s move forced landlords to quit.
Now James is the lead minister pushing the consultation about, amongst other things, rent controls.
NRLA’s Ben Beadle adds: “The minister [Julie James] herself diagnosed the issues when she rightly rejected calls for a rent freeze before Christmas. The same reasons apply now. We all want to see more homes available to rent but adopting the tried and failed ideology of rent controls is not the way to do it. The best way is to introduce pro-growth measures to increase housing supply that will reduce costs for renters.
“Now is the time for landlords to get involved and for the Welsh government listen carefully to the views of those providing much needed homes.”
You can see the consultation here.
This article is taken from Letting Agent Today