Item 13 on our agenda is the debate on Stage 4 of the Renting Homes (Amendment) (Wales) Bill, and I call on the Minister for Housing and Local Government to move the motion—Julie James. 

Motion NDM7600 Julie James

To propose that the Senedd in accordance with Standing Order 26.47:

Approves the Renting Homes (Amendment) (Wales) Bill.

Motion moved.

Thank you, Deputy Presiding Officer. I would like to begin by thanking the Chairs and members of the Equality, Local Government and Communities Committee, the Legislation, Justice and Constitution Committee and the Finance Committee, as well as all other Members who've contributed to the scrutiny of the Renting Homes (Amendment) (Wales) Bill. A special word of thanks also to the committee clerks, Senedd lawyers and other support staff who have worked with Welsh Government officials behind the scenes to help get this Bill through the scrutiny process during such a turbulent period, and in particular for their constructive approach over the recent weeks, which enabled us to include vitally important amendments to the Renting Homes (Fees etc.) (Wales) Act 2019 in the Bill. I extend the same thanks to Welsh Government officials who have also pulled out all the stops to get us to this point. I and my Cabinet colleagues recognise and appreciate your efforts. 

Finally, a sincere thank you to all of you from our external stakeholders and partners, those who responded to our consultation on the Bill, those who contributed evidence throughout the scrutiny process, and those who worked so tirelessly and with such dedication and commitment to the sectors and individuals they represent and support day in and day out. We will still be counting on that support and professionalism in the coming months as we move on to the work necessary to implement the most fundamental change to the rented sector in decades.

There is still much work to be done. We have a raft of subordinate legislation and guidance to put in place ahead of the coming into force of the 2016 Act, as amended by this Bill, next year, but I'm confident that, with the continued support and constructive challenge provided by our partners and stakeholders, we will get there. This Bill, alongside our other renting homes legislation, will establish fairer and more transparent arrangements for renting in Wales, and I urge all Members to support the Bill. Diolch. 

Thank you. Laura Anne Jones. Not present. Delyth Jewell. 

Diolch, Dirprwy Lywydd. A lot of hard work has gone into this legislation. I do commend the Bill team and the committee staff. There have been lots of positive conversations around the possibilities presented by the Bill. I believe we've started to see the beginnings of change of rebalancing the rights in favour of tenants, but—and there is a 'but', I'm afraid—it's been a real shame that the Government hasn't been able to move more on the notice period in the legislation. An opportunity really has been missed here.

My group tabled a series of amendments to the legislation that offered a wide range of options for compromise on this issue. Members will know that it was a long list because we had to vote on every single one, but each option was defeated, and that was disappointing. Strengthening tenants' rights has to be paramount, and we would have liked to have seen more radical progress. We're living in a time when being radical really is possible, and that is not the time to let opportunities pass us by. So, this is an area I think that we will see revisited in the beginning of the next Senedd term. I'm afraid that we will be voting against the legislation because it does not go far enough and because of the fact that we haven't seen that compromise, as I'd explained during the earlier stages. Diolch. 

Thank you. I think Laura Jones was having some problems with the technology, and therefore I see her now. So, I'm calling you now to speak, Laura. 

Thank you, Deputy Presiding Officer. Yes, I was booted out by the computer at the worst possible time. 

Firstly, I would like to place on record my thanks to the clerk and the legal staff for their support. I would also like to confirm that we'll be voting for this Bill today. The failure of this Minister to accept our amendments is regrettable, as these would have protected both the tenants and landlords and ensured a decent supply of housing in the rental sector. However, we support the overarching aim of this legislation, which is to provide greater security of tenure for renters.

The COVID-19 pandemic has shone a spotlight on the importance of housing and, in particular, a home. During the pandemic, we have all spent far more time at home as a result of the restrictions placed on us. It has become a place of work, a place of study, a place to socialise and a place of support. Security of home, therefore, has never been more important, and I recognise that the provisions of this Bill will help to provide renters with extra certainty, particularly during an uncertain time. However, it is important that legislation is balanced and meets the needs of those who are captured within its provisions. This view has informed the approach that my colleague Mark Isherwood and I have taken during the passage of this Bill. Without repeating the arguments that we've made, we've sought to respond to the concerns of landlords, the wider rental sector and other stakeholders about the Bill's potential unintended consequences. The Minister has previously recognised the concerns about the impact on members of the armed forces living in service accommodation, as well as on ministers of religion and representatives of faith communities. Again, I would like to push the Minister to ensure that these issues are addressed before the election, if possible. It would have been more beneficial for our amendments relating to ministers of religion and the armed forces to be on the face of the Bill.

There are also legitimate concerns from the rental sector about the impact that this Bill may have on the availability of homes, as well as on the annual business cycle in the student rental sector. The rental sector is a core part of the housing landscape in Wales, providing over 400,000 homes. This highlights the importance of ensuring that a balance is struck between the needs of tenants and landlords, particularly as any move that drives decent landlords out of the sector and reduces the housing stock available for rent would be detrimental to tenants in Wales in the long run. Minister, would you be able to outline how you plan to review the impact of the legislation, including any impact on the availability of rental properties, in order to alleviate these concerns and to ensure that any possible unintended consequences do not come to fruition?

Finally, we have also heard that many landlords experience difficulties in regaining possession of their property as a last resort. National Residential Landlords Association figures show that it takes an average of 22.6 weeks to gain possession of their property, despite current rules stating that this would take about nine weeks. Minister, could you provide details of any discussions you and officials have had on how to reduce this backlog, as well as any exploratory work on a future Welsh housing court or tribunal, to ensure landlords are able to access their right to an effective process? Diolch, Minister. Once again, we will be supporting this Bill today.

Thank you. No Member has indicated they want an intervention. Therefore, I'll call on the Minister for Housing and Local Government to reply to the debate—Julie James.

Diolch, Deputy Presiding Officer. The Welsh Government does not agree that a grounds-based approach to possession is currently the right one for Wales, and I reiterate once again that, under our Bill, tenants in Wales will have greater security of tenure in relation to a no-fault notice than anywhere else in the UK. Our six-month notice period represents a reasonable balance between the interests of landlords and contract holders—a position previously supported by the Equality, Local Government and Communities Committee in its Stage 1 report on the Bill. Six months provides an appropriate length of time to ensure someone is able to find a suitable home if they are served with a notice. There will always be circumstances where someone might want longer, but we have to consider the impact providing this would have on the rights of the landlord. So, again, I reiterate, this is a suitable balance between the two. Longer or shorter notice periods would upset the balance between the rights of the contract holder and the landlord.

We do not support the introduction of new mandatory grounds within a Bill that is aimed at increasing security of tenure. The basis of the Bill is to provide a minimum of six months' notice to a contract holder who has done nothing wrong during their occupation. I understand a landlord may have good reason to want to sell their property or live in it themselves, but these are not the fault of the contract holder and certainly should not take priority over their ability to find another suitable home. All Members should want to protect the rights of contract holders in these circumstances, and therefore I really do hope that Members will support this Bill today in order to give them those rights.

I'm happy to provide Laura with the reassurance that we are looking into the exemption for serving armed forces personnel. As I explained at Stage 3, it's not possible to put that on the face of the Bill without creating some unintended consequences, and we already have the regulation powers necessary to do that and we are in that discussion. I'm very happy to keep her and other Members briefed on that as we go forward. In relation to church-owned properties, we discussed this at Stage 2 and Stage 3, and I've made the Government's position clear. We're keeping the matter under review and look to use the available subordinate legislation powers to address any issues here if required. We're looking to hear the views of all parties who are potentially affected by the arrangements, and this will be part of our engagement work moving forwards.

I'm grateful to the committee clerks and the members of the committee, in particular in regard to the purpose of the Renting Homes (Fees etc.) (Wales) Act 2019, which was to prohibit landlords and letting agents in the commercial sector from requiring payments from contract holders and tenants under standard occupation contracts unless they're permitted under the Act. As I explained at Stage 3, it prohibits the payment of service charges in relation to a minority of tenancies in the social housing sector, which has led to unintended consequences, and I am very pleased that the Senedd will take the opportunity to vote to put that right and protect those tenants in particular.

Overall, Deputy Presiding Officer, I think that we have a reasonable compromise here between the rights of the landlords and our need to ensure that contract holders in Wales have the best protection available anywhere in the United Kingdom. On those grounds, I commend this Act to the Senedd. Diolch.

In accordance with Standing Order 26.50C, a recorded vote must be taken on Stage 4 motions. I defer voting on this motion to voting time.

Voting deferred until voting time.

In accordance with Standing Order 12.18, I will suspend the meeting before proceeding to voting time. The meeting stands suspended. 

Plenary was suspended at 18:16.

The Senedd reconvened at 18:19, with the Llywydd in the Chair.