There’s been a critical response from the letting agents’ body Propertymark at the latest attack on the viability of the private rental sector.

Welsh Government housing secretary Jayne Bryant says her administration would support the option of allowing tenants to not bothering payment of their final two months’ rent as compensation when facing a so-called ‘no-fault’ eviction.

In Wales the term ‘no fault’ applies to a Section 173 possession notice which enables landlords to evict tenants six months after a tenancy starts. 

The trade body says the move is “concerning” and believes it to be unnecessary as the Renting Homes (Wales) Act 2016 already gives tenants with six months’ notice for evictions significantly greater protection than tenants in England who receive a similar Section 21 notice. 

Propertymark says introducing extra financial penalties for landlords is counterproductive when they are already experiencing excessive costs from tax hikes, climbing mortgage rates, and repair costs, as it risks hindering the supply of rental homes, and will, therefore, cause rents to increase.   

Instead Propertymark wants the Welsh Government to build more affordable housing as a way to ease the overall rental crisis – something advocated by the Welsh Parliament’s Local Government and Housing Committee.

Tim Thomas, Policy Officer at Propertymark, comments: “Propertymark has consistently supported both the Senedd Committee and the Welsh Government in policy positions to improve the private rented sector in Wales. It is positive to see that Propertymark’s positions have been accepted by the Welsh Government, including improved training which we have called for as part of our review of Rent Smart Wales, and improving access to the private rented sector through a local authority database of adaptive property in the private rented sector.  

“The Welsh Government has listened to our concerns over the unintended consequences of implementing rent controls in Wales by currently discounting them as part of their White Paper. However, they must now continue to listen to our advice over the likely impact of awarding two months’ compensation to tenants in receipt of a possession notice will have on the sector. We are continuing to engage with the Cabinet Secretary on this issue.”

However, the professional body expressed its disappointment that an opportunity to implement mandatory qualifications as opposed to a one-off course offered via Rent Smart Wales was not offered.

Instead, Propertymark wants Wales to be more aligned with Scotland that has mandatory qualifications for letting agents.