Tenants in Wales who are evicted via a Section 173 possession notice should be able to keep the last two months’ rent as compensation, the Welsh government said.
This was in response to an enquiry into the private rented sector from the Senedd’s Local Government and Housing Committee.
Propertymark, the estate agency group, had provided written and oral evidence to the Welsh government about the private rented sector.
Tim Thomas, policy officer at Propertymark, said: “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.”
Propertymark noted that the Renting Homes (Wales) Act 2016 already gives tenants with six months’ notice for evictions greater protection than tenants in England who receive a similar notice.
Propertymark added that increasing supply is the most efficient method to stabilise rents and stop further market distortions.
This can be achieved by constructing more social homes as well as reviewing the phasing out of tax relief on mortgage interest for landlords, as well as the extra Land Transaction Tax surcharge on buy-to-let property.
Propertymark stated that it is pleased the Welsh government has accepted the prospect of introducing a register of accessible accommodation available to rent.
The professional body suggested this in both its oral and written evidence to the Senedd Local Government and Housing Committee’s Inquiry into the private rental sector as well as in the Levelling Up, Housing and Local Government Committee into their inquiry into disabled people in the housing sector.
However, it stressed that membership should be voluntary. Where appropriate social housing is not available, local councils should signpost people to suitable property in the private rental sector. This could be beneficial as it could cater for local support mechanisms for tenants.
Thomas added: “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.”