Diolch, Llywydd. I’m pleased to contribute to this Stage 1 debate to outline the Finance Committee’s recommendations in relation to the financial implications of the Renting Homes (Fees etc.) (Wales) Bill.

The Finance Committee supports the general principles of the Bill and agrees that the provisions are necessary to sustain an accessible and affordable private rental sector in Wales. However, we wish to bring the Assembly’s attention to the variation in the figures in the regulatory impact assessment in estimating the potential costs or benefits that could arise from implementing the Bill’s provisions.

The Welsh Government’s analysis has been developed through engagement with key stakeholders, including Rent Smart Wales, as well as being informed by the consultation exercise, independent research and the experience, of course, of similar legislation being implemented in Scotland. Nevertheless, the Minister told us that it has been necessary to make a number of assumptions, due to the substantial differences in practice across the private rented sector. Given the uncertainty in the central estimate presented, the Welsh Government has undertaken a sensitivity analysis, testing the impact of changes to these key assumptions.

The inclusion of the sensitivity analysis, examining the range of potential costs in the best and worst-case scenarios, is very much welcomed by the committee, although it does demonstrate a broad range of costs. For example, the 'do nothing' option presents a cost range of £36 million between the lower and higher estimates for tenant fees over a five-year period. And whilst recognising the estimated savings to tenants of banning fees, we are mindful that letting agents and landlords will recoup this lost income by other means, and we have recommended that the Welsh Government closely monitors and reviews the impact of the Bill’s implementation on rent levels.

Our final recommendation relates to local authority costs, and the costs of enforcement in particular, which will be central to the Bill’s success. We note the Minister’s view that a high level of compliance is anticipated, and recognise that local authorities will be able to retain the income from collecting fixed-penalty notices to offset enforcement costs. However, we remain concerned that enforcement activities may not be cost neutral for local authorities, and that increased rent levels could impact on local authorities' ability to discharge their duties to prevent homelessness through a private rented sector tenancy. We have therefore recommended that the Bill's financial impact on local authorities, particularly with regard to enforcement costs, should be closely monitored and evaluated to ensure that sufficient resources are available.