Turning first to the Equality, Local Government and Communities Committee report, I am pleased that the committee has recommended that the Assembly agrees the general principles of the Bill. Although there are some differences regarding certain matters of detail, I welcome the committee's conclusion regarding the need to legislate. Recommendation 2 seeks to place a duty on Welsh Ministers, local authorities and Rent Smart Wales to inform tenants, landlords and agents of the Bill's provisions. Subject to approval of the Bill by the Assembly, we will be undertaking a significant communication programme involving local authorities, Rent Smart Wales and the third sector, as well as more general communications targeting a wide audience.

The duty to inform in the Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 reflected the fact that the audience for that Act was readily identifiable and distinct. The much broader audience for this Bill, including anyone who may be considering renting, as well as those already doing so, means that a more general communications strategy is more appropriate. Therefore, whilst happily committing to undertaking an effective and comprehensive communications programme regarding the Bill, I must reject the recommendation.

I am, though, supportive of recommendation 3 for Rent Smart Wales to have enforcement powers alongside local authorities. Since Rent Smart Wales is the licensing authority under the Housing (Wales) Act 2014, it would, under current proposed arrangements, be possible to achieve this using an existing power under the Local Government Act 1972. This enables a local authority to agree that another local authority should discharge a function on its behalf. However, since the 2014 Act provides for a body other than a local authority to be designated, I recognise the recommendation will help to futureproof the Bill, and make enforcement more efficient. Therefore, I will consider bringing forward an amendment to provide for the licensing authority to have enforcement powers at Stage 3, once the detail's been fully considered.

I regret that it will not be possible to agree the specific amendment proposed by recommendation 4, but I do recognise the concern of the committee regarding payments in default, although I believe the recommendation may be more difficult to implement than may be immediately apparent. However, given those understandable concerns, I have tasked my officials to review how the Bill might seek to address this issue. I will write to the committee to update them on my thinking in this area and, should an amendment assist, I will consider bringing one forward at Stage 3. 

I'm pleased to accept recommendation 5, and will bring forward an amendment at Stage 3 to treat payments for utilities, council tax, communications services and the tv licence as permitted payments.

I accept in principle recommendation 6 regarding exit fees. However, I want to further explore the options to address this issue, and will write to the committee following those deliberations. 

I'm not persuaded to accept recommendation 7, as the Bill does not permit more than one holding deposit being taken at any time. An individual paying a holding deposit has a right to first refusal and, where paid, it means the contract must be granted to the contract holder. Ultimately, if issues do arise, there is already a power in the Bill to amend the definition of permitted payments. However, I'm not convinced, based on research available to us, that there is sufficient evidence to amend the Bill at present.  

Regarding recommendation 8, I recognise Members' unease in respect of the provision in paragraph 7 of Schedule 2 to the Bill relating to the right to rent under the Immigration Act 2014. I am, therefore, content to accept the recommendation and omit the paragraph on the basis that the relevant provisions of the 2014 Act are not yet in force in Wales. However, if the UK Government brings the relevant provisions of the 2014 Act into force, they could amend Schedule 2 so that the provision is made.

The Bill's enforcement has been a key consideration during scrutiny, which I intend to address by accepting recommendations 9 and 10. This means that a landlord will be restricted from serving a notice under section 173 of the Renting Homes (Wales) Act 2016, currently known as a section 21 notice, if a landlord has required a prohibited payment that has been paid and not returned, or if a holding deposit has not been repaid.

I will also bring forward an amendment doubling the sum of a fixed-penalty notice to £1,000, strengthening an important part of the enforcement regime, whilst keeping it to a level where the FPN remains the swift and effective enforcement tool it's designed to be, and reflecting its role as part of a wider enforcement regime.

Regarding recommendation 11, I've asked my officials to give further consideration to creating a banded or tiered approach when issuing fixed-penalty notices, and, again, I will write to the committee as soon as that work has been concluded.

I cannot accept recommendation 12, because it would replicate powers already available under section 36 of the Housing (Wales) Act 2014, which, I would argue, address the committee's concerns. 

Recommendations 13 and 14 would, in my view, unnecessarily complicate the Bill and would undermine our approach to enforcement, so I must reject both. 

I am, however, happy to accept recommendation 15, which will ensure that we monitor the Bill's impact on the student rental market. 

Turning to the Constitutional and Legislative Affairs Committee's report, regarding its first recommendation, I am happy to take this opportunity to confirm that I am satisfied that the Bill is housing related and does not engage any reserved matter. It's not standard practice for the Welsh Government to provide detailed analyses of competence, either in committee or during a general principles debate. Where detail is provided, it reflects unique circumstances, which do not apply to this Bill.

Recommendation 2 makes a broader point in relation to information on legislative competence in explanatory memorandums. This is an issue on which I know the committee has written to the First Minister, and a response will be provided shortly. 

Regarding recommendation 3, I am pleased that the Bill has been able to trial our new approach to integrating impact assessments, consolidating the current suite of impact assessments within a single document. The new process fulfils existing statutory duties associated with impact assessments and brings together a range of impact assessments in a more coherent framework. This reduces complexity and duplication, and so should assist the reader.

Regarding recommendation 4, this is an issue on which I know the committee has written to the First Minister, who will respond on behalf of the Welsh Government shortly. With regard to this Bill, I can confirm that a link to the impact assessment gateway document will be added to the explanatory memorandum.

I'm also happy to clarify the statements made within the explanatory memorandum and impact assessment gateway document in respect of privacy matters. Both will be amended to highlight that there will be privacy implications for a local housing authority when investigating offences and notifying Rent Smart Wales of an offence. I will ensure that the Bill's privacy impact assessment is published on the Welsh Government's website alongside the impact assessment gateway document. In addition, the explanatory memorandum will be amended to better reflect the approach that will be followed when consulting on subordinate legislation.

I can confirm that I will be tabling amendments to the Bill to make regulations made under Schedule 1, paragraph 2(4) and paragraph 6 of the Bill subject to the affirmative procedure. However, I cannot agree with the committee's recommendations that regulations under sections 7 and 13 should follow the superaffirmative procedure. I consider this to be unnecessary, as sufficient scrutiny and consultation will be provided through the affirmative procedure.

Similarly, I must reject recommendation 12, which proposes regulations under section 18 follow the affirmative procedure. That change is unnecessary, given that regulations can only deal specifically with those matters set out in the section, which effectively limits discretion as to the contents of those regulations.

Finally, I welcome the findings of the Finance Committee, particularly its welcoming of the explanatory memorandum's use of sensitivity analysis. The committee's two recommendations are consistent with my thinking on how we will assess the impact of the Bill. I look forward to continuing the debate on the Bill, and hope this Assembly will support its general principles. Diolch yn fawr.