1. Questions to the Minister for Climate Change – in the Senedd at 2:14 pm on 6 October 2021.
I wish to declare an interest and refer Members and members of the public to category 8, land and property, on my register of interests.
7. Will the Minister make a statement on the impact of the Renting Homes (Wales) (Amendment) Act 2021 on landlord continuity in the private let sector? OQ56950
Yes. Thank you, Janet. Implementing the Renting Homes (Wales) Act 2016, as recently amended by the 2021 Act, will increase security of tenure and significantly streamline the legislation on renting, ensuring that all key rights and responsibilities are set out in a written contract. This will support continuity and benefit both tenants and landlords.
Thank you. At the point of any home possession, a landlord can actually have amassed costs of more than around £30,000 when considering lost rent, legal fees and often damage that needs calculating. This, of course, is when tenants are not fulfilling their own due lease obligations. Now, delays are reported at every stage of the possession process, with the median time standing at 21.1 weeks by March 2020. Taken together, this results in a fundamental lack of faith in the present court system from our landlords and risks undermining the legal redress protections enacted for tenants by the renting homes Act.
Now, as Propertymark have informed me, there is a very real risk that landlords, particularly those owning a single property, will leave this sector providing these much-needed homes. Now, in October last year, the Legislation, Justice and Constitution Committee recommended the investigation of the need for a stand-alone and specific housing tribunal in Wales. So, Minister, will you confirm what discussions you have had and undertaken to review the possibility of developing a dedicated housing tribunal for Wales? Diolch.
Well, you know, Janet, sometimes, I feel just a little bit weary of the Conservatives always opposing measures that they say will prevent employment on the minimum wage and prevent landlords coming into the rented homes sector if there's any kind of regulation, in the teeth of all the evidence to the contrary. So, just to put the record straight, obviously, the renting homes legislation makes the process of renting fairer and more secure, but landlords still have the tools available to them to gain possession where there is a breach of contract.
And just to say that data from Rent Smart Wales shows us that the private rented sector is actually growing at the moment and not shrinking, despite all the warnings from yourself and others. So, we had 207,000 properties in December 2019 and we've got 216,000 in August of this year. The number of registered landlords has also continued to grow; we had 102,711 at the end of December 2019, 106,936 at the end of December 2020 and 107,059 at the end of August. So, you'll see a continuing rise in the number of landlords and not a decline, despite the dire predictions of people on the opposite benches. So, it just isn't true that the introduction of registration licensing and fairer systems deters landlords. And as I continually say, good landlords like good regulation, they want to be fairly compensated for the very good homes that they provide people and all we're doing is making sure that the practices that bring the sector into disrepute of a very few individuals are stamped out so that our good landlords can be rewarded. So, we're working very hard to implement the renting homes legislation, as I said. I am very keen to honour our commitment to have at least six months' prep time for both tenants, landlords and others by issuing them the key documentation they need, and this will begin to happen over the next few months.
In terms of the tribunal, I'm very happy to continue to look at that. I don't disagree, really, with the idea of a housing tribunal, but it has to be set in context, so there are a number of other things that we need to look at at the same time. But I don't really disagree with the principle of that; the devil, as always, will be in the detail.