The Long-term Rental Sector

1. Questions to the First Minister – in the Senedd on 12 July 2022.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

(Translated)

5. What is the Government doing to protect the long-term rental sector in the face of growth in the short-term rental sector? OQ58338

Photo of Mark Drakeford Mark Drakeford Labour 2:18, 12 July 2022

(Translated)

Llywydd, we are ensuring that there are strong mechanisms for the long-term and short-term rental sectors. The measures include introducing a statutory licensing scheme for all holiday lets and ensuring that business rate relief is focused on those holiday properties that are rented for the majority of the year.

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

Now, on top of houses being sold as holiday homes or lets, I've become aware recently of the practice of long-term tenants being evicted so that their homes can be turned into short-term holiday accommodation. Constituents tell me that it's happening across our coastal communities.

The actions of one landlord are particularly worrying. Through historic privilege, the Bodorgan estate is a very important landlord, perhaps our best known landlord from when the Duke and Duchess of Cambridge were on Anglesey. The estate owns many houses, but I've spoken to tenants who say they have been told to leave so that their homes can be turned into holiday lets. Now, in Scotland, it was intensive grazing that led to the infamous highland clearances of the eighteenth and nineteenth centuries. On Anglesey, in the twenty-first century, it's tourism, but the principle is the same. From the scale of what I'm hearing, I fear losing large swathes of permanent population.

Through our co-operation agreement, a number of measures have been announced to start addressing the situation, including those plans for a licensing system before a home can be turned into a short-term let. Does the First Minister agree that there can be no delay, and what action could he take now to try to stop these evictions already under way?

Photo of Mark Drakeford Mark Drakeford Labour 2:20, 12 July 2022

Well, Llywydd, there are 10 different strands in the package of measures that we announced together on 4 July, and those are measures that we will be taking forward with the urgency that is required in order to make a difference in rebalancing, as I said, the short and long-term rented sectors. I'm concerned at what the Member has said this afternoon, and I'll be interested to know if there's any further evidence that he has. People cannot simply be evicted by being asked to leave; there are rules and legal requirements that landlords have to abide by in all sectors, and I will be genuinely interested to find out more of the particular examples that Rhun ap Iorwerth has outlined.

Llywydd, there is no—as far as I am aware—evidence of wholesale retreat from long-term renting in Wales. I think the last figures I saw were that there were over 207,000 properties registered with Rent Smart Wales as long-term properties for rent, and because we're now five years on from Rent Smart Wales, and landlords are having to reregister, there were 810 landlords registered with Rent Smart Wales in June alone. But, what the programme of action that we have agreed will do will make sure that there's greater parity between long and short-term obligations. If you're a long-term renter, you have to register with Rent Smart Wales; you have to demonstrate that you have a series of things in place—insurance arrangements, safety arrangements and so on. Our licensing scheme for short-term rentals will drive up standards in that part of the market as well and will make those obligations, as I say, on a greater parity with one another. And, other things that are part of a package of measures we put together, making sure that short-term rental businesses are genuinely businesses, renting out their properties for the majority of the year, will also lead to greater parity between those two aspects, the short and the longer term rental markets. They will make a difference, and if there are other things we need to do to attend to the sorts of issues that Rhun ap Iorwerth has raised this afternoon, then of course that package of measures can be extended further.