As the Welsh Government's explanatory memorandum to this Bill states,

'The private rented sector (“PRS”) plays an important part in meeting the housing needs of the people of Wales' and

'the Welsh Government wishes to ensure there is the right balance of support and regulation in the PRS'.

However, given the increasing dependency of people on the private rented sector for housing, a fine balance must be struck to protect both parties in these arrangements and avoid unintended consequences that run counter to this goal. Tenants, of course, need the security of a good home and a responsible landlord, but landlords also need the security of responsible tenants. The majority of landlords are individuals who let out one or two properties. Many of these rely on that income for their day-to-day living expenses, or to provide pensions. Any actions that drive decent landlords out of the sector and reduce the housing stock available for rent would be detrimental to tenants in the long run.

Whilst the Equality, Local Government and Communities Committee recommends the general principles of this Bill should be agreed, it also acknowledges that there was a clear split in opinion as to whether the legislation was required. The Bill's explanatory memorandum states that the overarching aim of the Bill is to improve security of tenure for those who rent their homes in Wales. However, responses to the Welsh Government's consultation were mixed. Although 70 per cent of contract holders in this sector who responded were supportive of the main proposal to extend the notice period for section 173 evictions to six months, and 78 per cent were supportive of the proposal to prevent an eviction notice from being served within the first six months of a new occupation contract, 94 per cent of private landlords who responded were against the former, and 92 per cent of letting agents were against the latter. Notwithstanding this divergence in opinion, we will support the general principles of the Bill to provide greater security for people who rent their homes in Wales. However, we do also acknowledge the concerns of landlords about the impact that these reforms may have on their ability to protect their incomes, remove bad tenants as a last resort, and ensure that they can take possession of the property in exceptional circumstances, such as needing to move in themselves.

As the National Residential Landlords Association stated in written evidence to committee,

'Landlords do not go to court without good reason and prefer to keep good tenants in their homes.'

ARLA Propertymark, the professional and regulatory body for letting agents, states that letting property will become less viable for landlords under the Bill's current proposals, where there's no,

'straightforward means to regain the property quickly when things go wrong.'

They note in consequence that there will be fewer privately rented homes, ultimately leaving tenants with less choice of where to live, increasing rents and forcing landlords to become more risk averse and only choose to house the lowest risk tenants. In order to make the legislation workable, they state that the Bill must be amended to include four mandatory grounds for repossession: when the landlord intends to sell the property, intends to move into the property, intends to move a family member into the property, and where a mortgage lender needs to regain the property. It is noted that although the UK Government's proposed abolition of no-fault evictions in England went further than the Welsh Government's Bill, its Renters' Reform Bill gives landlords more rights to gain possession of their property through the courts, where there is a legitimate need for them to do so, by reforming current legislation. The UK Government have also said that they will work to improve the court process for landlords to make it quicker and easier for them to get their property back sooner.

In light of this Bill's unintended consequences, the NRLA have sought to develop constructive compromises that seek to balance the needs of both landlords and tenants, and I welcome the Minister's acceptance of one of those already. For example, in addition, allowing for a six-month section 173 no-fault eviction notice to be served after four months but take effect at the end of the six-month fixed term, giving tenants more notice and the landlord flexibility; and amending the minimum contract length to 12 months, but allowing a six-month tenant-only break if the landlord and tenant agree so at the outset of the contract.

I also, listening to the previous contribution, note the call by Electrical Safety First for the Welsh Government to implement as quickly as possible the requirements in the original legislation for landlords to ensure any dwellings let are fit for human habitation, including mandatory electrical safety checks. Diolch.