6. Debate on a Member's Legislative Proposal: Mabon ap Gwynfor (Dwyfor Meirionnydd) — Rent control

Part of the debate – in the Senedd at 3:47 pm on 9 February 2022.

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Photo of Julie James Julie James Labour 3:47, 9 February 2022

How on earth you think that we can have rivers full of phosphates and build substandard housing all over green land in Wales and have a coherent approach to the climate and nature emergencies, I really cannot understand. So, you just really need to take a good look at yourself and get a coherent approach to this.

I have met with a large number of interested private sector investors who really like the approach that we have here in Wales. They want, of course, because they are decent human beings, to make sure that they contribute to ensuring that everyone in Wales has access to a decent, affordable and safe home, because they are very well aware that housing is not just about profit. So, I think you are hanging out in the wrong crowd entirely over there on the very right-wing Conservative benches.

So, we think the approach set out in our programme for government is the right way forward. We will be shortly commissioning independent research so that we can all understand what measures have the best chance of success. Building on that research, we will then produce a White Paper containing the policy proposals, which will be the subject of a consultation.

We are, of course, wholly committed to ensuring that everyone in Wales has access to a decent, affordable and safe home. Pivotal to this is ensuring that rents are affordable, and we are, of course, acutely aware of the cost-of-living crisis facing so many people in Wales. As I said in a debate, Dirprwy Lywydd, only yesterday, the Tories on the opposite benches, whilst shouting from sedentary positions at me are also the party that have frozen the local housing allowance, making sure that people do not have access to affordable rents in the private rented sector if they're on benefits. Really, you need to take a good look at yourselves.

We are putting a raft of measures in place already, including our commitment to building 20,000 new low-carbon social homes for rent. In terms of the private rented sector, I've already referenced the national leasing scheme. This builds on our successful pilot to enable local authorities to lease properties from private property owners for between five and 20 years. We have a large number of private investors interested in this. Local authorities will provide these homes at affordable rent to those who would otherwise face potential homelessness. They will provide the support tenants need to sustain their tenancies and thrive in their homes.

More broadly, of course, and I just remind Mabon, who didn't quite remember this in his speech, implementation of the Renting Homes (Wales) Act 2016 will transform the landscape for tenants and considerably strengthen their rights. Providing they don't breach their contract, tenants will have a right to six months' notice if the landlord seeks to end the contract. That notice cannot be served in the first six months, so they'll have security of at least a year after moving into their home. The renting homes Act will provide greater security than elsewhere in the UK for all tenants. There are, of course, many other important provisions in the Act, including around improving the quality of rented homes and making sure that they are fit for human habitation.

We will publish a Green Paper later this year, as the next step in bringing forward ending homelessness legislation, that will fundamentally reform homelessness services to focus on prevention and rapid rehousing. In terms of the commitment to publishing a White Paper reflected in our programme for government, this will explore the role rent control can have in making the private rental market more affordable. It's an extensive and complex area of policy and law and it's essential to gather the evidence, including international models of rent control and the experience and impact of measures taken in both Scotland and Ireland, which Mabon referenced. It's important we learn from the approaches taken in other countries, and in particular this will include understanding what has worked well where rent controls are in place and what has not worked, and, critically, as Carolyn Thomas mentioned, any unintended consequences, so that we can iron them out in the measures that we take.

As I indicated, for example, in Ireland, the legislation was introduced allowing rents to increase to a maximum of 4 per cent in rent pressure zones, but actually it turned out that inflation was lower than that, and the 4 per cent became a target rather than a cap. So, we need to craft our legislation carefully so that we don't have rigid boundaries in place and we can calibrate it across the piece. Anecdotally, the measures there are linked to an increase in evictions, of course, because they have then got a ceiling instead of a cap, which we need to guard against. 

We will commission the independent research into the rent controls so that we do pick up the very good examples that we have. Mabon referenced Catalonia, for example, and we know that that's been successful there. Engagement with partners and citizens will be a very important part of this research, which will then inform the policy proposals to be included in the White Paper. 

So, in summary, Dirprwy Lywydd, I fully support the drive to increase the access to affordable homes and to make this the right of every person in Wales. It is, though, critically important to explore what is the most effective way of achieving this and securing more decent and affordable housing. The White Paper will be underpinned by the evidence gathered and provide robust options for future legislation on new approaches to ensure rental affordability. Diolch.