Isherwood: Residential Landlords Selling Up because Of Welsh Government Legislation

Mark Isherwood

Mark Isherwood

Shadow Housing Minister Mark Isherwood AM is concerned that residential landlords in Wales are selling up because of Welsh Government legislation.

Mr Isherwood raised the matter when questioning the Housing Minister in the Chamber on the proposed new power for local councils to discharge their homelessness duty into the private rented sector.

He said:

“In Wales, as you will be aware, the private rented sector comprises16% of housing stock but I understand that 45% of those tenants receive a Local Housing Allowance (Housing Benefit) and discharging the homelessness duty is expected to increase that proportion to possibly more than half.

“How do you respond, therefore, to concern expressed to me as recently as today by landlords’ representatives that the legislation is making it harder for them to supply housing for this purpose, that they are already dealing with portfolios that are being sold off now and that the 80% of landlords who only have one property and the remainder need incentives to invest to meet this need and to work with the (Welsh) Government and tenants to identify ways – such as energy efficiency improvements through the Energy Companies Obligation and Nest – to drive forward the improvements that everybody needs?”

The Minister replied: “I do not agree with you that there is legislation that is prohibitive for landlords, which is stopping them from doing this. As regards the other point around incentives, I am very keen to work with landlords, because I know from working with the private rented sector and the discharge of the homelessness duty that there are risks for everybody; therefore the PRS system that I will be introducing with the will of this Assembly will give us the opportunity to make sure that we have a registration scheme that will be very clear on appropriate accommodation to discharge homeless people into.”

Mr Isherwood added: “Reputable residential landlord organisations tell me that landlords are selling rented property now because the Welsh Government is making it harder for them, when there needs to be increased supply through encouragement and incentives.

“In terms of increased energy efficiency standards, they want to work with Ministers to raise tenant awareness and take up of schemes they are entitled to.”

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