1. Questions to the First Minister – in the Senedd on 28 November 2017.
1. Will the First Minister make a statement on the budget of Rent Smart Wales? OAQ51384
Yes. Rent Smart Wales is self-financing through fees. We do, however, support local authorities to promote and enforce registration with Rent Smart Wales.
First Minister, according to the freedom of information request put forward by the Residential Landlords Association, Rent Smart Wales is currently operating at over double its projected cost. At the end of February 2017, it had hired 50 full-time equivalents to administer the scheme, which is five times the projection of your regulatory impact assessment. Was the Welsh Government naive in its estimates of the administrative costs of Rent Smart Wales, or is inefficiency at Rent Smart Wales to blame?
As I said, Rent Smart Wales is entirely self-financing. It's paid for through the fees for registration and licensing of landlords and agents, and it's a matter for Rent Smart Wales, of course, which is run by Cardiff council, to explain its operating costs and what it does with the personnel that it has.
First Minister, how does the work of Rent Smart Wales help towards supporting the most vulnerable members of our society who live in private rented accommodation?
Rent Smart Wales ensures that anyone involved in the letting and management of properties is both fit and proper and trained. The fit-and-proper-person test makes sure that nobody with unspent criminal convictions can have any involvement with a tenant, particularly important, of course, when dealing with vulnerable tenants. And training ensures that a landlord or agent is aware of their legal responsibilities, especially in terms of the safety of the property they let.
First Minister, figures released last week showed that 86,238 landlords are now registered, meaning an estimated 3,762 are letting properties illegally. Registering as landlords costs £33.50 if completed online, and £80.50 on paper, irrespective of the number of properties they have. The scheme was launched on 23 November 2015, giving landlords 12 months to register, before it became law last year. First Minister, isn't it time that all landlords followed the example of the vast majority and live up to their social obligations to their tenants, comply with the law and deliver decent housing conditions in Wales? And what can the Welsh Government do to aid bringing those who, for whatever reason, continue to flout the law—?
Well, I absolutely agree that those landlords who have, as yet, failed to come forward need to do that now. They are breaking the law. If landlords come forward now, they may escape any financial penalties for non-compliance. If they don't come forward now and are subsequently found out, then, of course, Rent Smart Wales could issue fines, take them to court for prosecution, and they even have the power to remove their ability to let or manage properties. So, the sanctions are there. It's hugely important that landlords avoid those sanctions by complying with the law.