The Welsh Government has confirmed that it will explore enabling renters to keep the last two months of their rent as compensation when facing a no-fault eviction.
The Senedd’s Local Government and Housing Committee called for this compromise as part of its inquiry into the private rented sector (PRS).
The Welsh Government has accepted the recommendation, saying it will engage with stakeholders and report back with conclusions by the end of April 2025.
The Committee’s report, to be debated by the Senedd this Wednesday, makes a series of other recommendations aimed at making the PRS fairer for both those who rent or own properties.
The Welsh Government accepted most recommendations in full or in principle. It rejected one recommendation, on reviewing the role of the Housing Support Grant (HSG) in the sector.
A homelessness solution
HSG is the Welsh Government’s main funding stream for services that support people to maintain their tenancies and avoid homelessness.
Its role in the PRS drew the Committee’s attention during engagement with tenants and landlords who are part of the Champions Network run by Tai Pawb. Members heard from some landlords who specialise in working with tenants on lower incomes, including tenants who may need support services funded by HSG.
One such private landlord is White House Supported Living in Newport, which was included in the report as a case study. White House accommodates tenants with support needs, many of whom have been through homelessness, providing them with stable long-term homes in shared housing.
The council provides the company with HSG so that tenants each get tailored support to help maintain their tenancy.
One resident told a Committee representative that:
If it wasn’t for this place I don’t think I’d be alive today.
The landlords told Members that they felt there should be better recognition of private landlords in their position, who are housing people in similar ways to social landlords and charities but who don’t have the same access to grants, funding, or opportunities for shared learning.
Members concluded that given the extent of social housing undersupply, models like White House can be effective in providing stable, supported homes. The Committee recommended that the Welsh Government should review how many private sector landlords receive HSG for tenants who have support needs, and take steps to review and promote examples of good practice within the sector.
The Welsh Government rejected this, stating that HSG is tenure neutral. Its response disputed that HSG is provided directly to private landlords. It also said the Welsh Government already works with local authorities to ensure that good practice is identified.
No-fault evictions
Another theme in the inquiry’s evidence was the continuing existence of no-fault evictions in Wales. These were banned in Scotland in 2017, and may also be banned in England via the Renters’ Rights Bill, which is currently at report stage in the House of Commons.
The Welsh Government’s position is that banning the no-fault possession ground would contravene human rights law unless new grounds are introduced to allow landlords to evict so they can live in the property themselves or sell with vacant possession. Grounds for these purposes are available to landlords in Scotland, and will be for landlords in England under the Bill.
The then Cabinet Secretary Julie James MS told the Committee that this means tenants in Wales wouldn’t have any more security in their home if no-fault evictions were ended, than they already have under current Welsh legislation. She said:
In Wales, the Renting Homes Act gives you six months straight, and then six months’ notice, so a new tenant has a year minimum. And then there’s a six-month rolling period after that. That's the longest of anywhere in the UK.
But with no-fault evictions still a worry for thousands of renters in Wales, the Committee suggested allowing tenants to keep the last two months’ rent as “relocation relief” to compensate for the financial and wellbeing impacts of a forced move. The report said: “such a step could help to prevent homelessness and reduce local authority spend on deposits and rent in advance”. The Welsh Government agreed to explore this.
The Committee also said that the Welsh Government should monitor the situation in England to ensure that tenants in Wales don’t end up worse off.
Rent levels, property conditions, and pets
Pets were a major theme, with charities highlighting the high numbers of animals relinquished to shelters every year due to their owners being unable to find a pet-friendly home in the PRS. This Senedd Research article covers the issue in more depth.
Another theme was property conditions. Witnesses described issues with damp, mould and cold. The Housing Expert Panel, representing local authority Directors of Public Protection, said that “much of the sector is of good quality and managed well,” but added that “there is a small core of landlords/agents who do the minimum they can get away with to maximise their return. These tend to have a significant portfolio.”
The Committee recommended that the Welsh Government should set out targets and milestones for applying the Welsh Housing Quality Standard, currently applying only to social housing, to all housing.
It recommended exploring ‘property MOTs’ as part of the landlord licensing regime to verify that homes are fit for human habitation.
It also recommended increasing local authorities’ capacity to carry out inspections and enforcement. The Welsh Government accepted the three proposals in principle.
Members were also concerned about evidence they heard on the impact of high rents on tenants. However many witnesses said that rent controls are not a straightforward solution and could lead to unintended consequences, including increases in homelessness.
The Committee said the Welsh Government should consider putting in place an effective mechanism for tenants to challenge rent rises that are above market levels. The Welsh Government’s White Paper, published after the Committee’s report, is inviting views on taking this proposal forward.
The report concluded that many of the problems in the PRS are supply-related, and in that light, one of the most effective things the Welsh Government can do to help the PRS is to increase the supply of social housing.
That particular challenge has been the subject of another recent inquiry by the Committee, currently awaiting the Welsh Government’s response.
Catch up with the debate on the private rented sector this Wednesday on Senedd.tv. or view the transcript afterwards.
Article by Jennie Bibbings, Senedd Research, Welsh Parliament