Adequate Housing, Fair Rents and Affordability in Wales

The Welsh Government has launched its highly anticipated white paper on 'Securing a path towards Adequate Housing, including Fair Rents and Affordability'.

The proposals are the latest in a series of major initiatives to overhaul the rental sector in Wales, especially those in private rental accommodation, covering areas including rental data collection, habitable homes, pets, and potential for Land Transaction Tax changes.

It is hoped the proposals will have a positive impact on:

• Life expectancy
• Disposable household income
• People living in poverty and material deprivation
• Feeling safe
• People satisfied and involved with where they live
• Hazard-free homes
• Energy efficiency of homes
• Preventing Homelessness
• Housing costs

Included with the White Paper are:

• proposals to improve rent data, including a requirement on landlords/and or agents to provide rent data to Rent Smart Wales.
• the development of a spatial rent map to show local area rent data.
• proposals on how to demonstrate a property is habitable.
• proposals to support people renting with pets.
• guidance around rent guarantors.
• exploring the potential for Land Transaction Tax ('LTT') higher residential rates relief if properties are signed up to the Welsh Government's Leasing Scheme Wales.

The paper also proposed that landlords declare none of the 29 matters and circumstances in the 'Fitness for Homes for Human Habitation' are present, which include damp and mould, extreme thermal discomfort, overcrowding, building material hazards, and safety and security.

Commenting on the launch of the White Paper, Sam Rees, Senior Public Affairs Officer at RICS, said:

"The Welsh Government's planned changes build on several years of reform in the private rental sector.

"We fully support the need for enhanced rental data collection to inform evidence-based decision-making. The government addresses rent controls in the paper, and we are pleased they recognise that without comprehensive data and addressing broader housing supply challenges, rent controls, though an appealing idea for tenants are often ineffective.

"The proposals for landlords to self-certify homes as fit for human habitation place a stronger emphasis on regular property condition assessments. RICS is committed to supporting this initiative by developing the necessary standards, like the work in England to expand the Decent Homes Standard to the private rented sector. However, greater support and resources from both government and industry will be necessary to meet these 29 conditions for habitation fitness.

"Crucially, we must ensure that these reforms do not worsen the existing challenges in the Welsh private rental sector. The RICS Residential Market Survey consistently shows that rent demand continues to outpace supply in Wales. To address this, we need to provide landlords with the confidence to stay in the market, incentivise the creation of much-needed rental and affordable housing, and improve the overall quality of homes for tenants."

RICS will be responding to the White Paper consultation which closes 31 January 2025. If you would like to be involved in shaping our response, please email Sam Rees on [email protected]

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