I call on the Minister for Climate Change, Julie James.

Motion NDM8058 Lesley Griffiths

To propose that the Senedd, in accordance with Standing Order 27.5:

1. Approves that the draft The Renting Homes (Wales) Act 2016 (Housing Association Tenancies: Fundamental Provisions) Regulations 2022 is made in accordance with the draft laid in the Table Office on 21 June 2022.

Motion NDM8056 Lesley Griffiths

To propose that the Senedd, in accordance with Standing Order 27.5:

1. Approves that the draft The Renting Homes (Wales) Act 2016 (Amendment of Schedule 12) Regulations 2022 is made in accordance with the draft laid in the Table Office on 21 June 2022.

Motion NDM8059 Lesley Griffiths

To propose that the Senedd, in accordance with Standing Order 27.5,

1. Approves that the draft The Renting Homes (Wales) Act 2016 (Amendment) Regulations 2022 is made in accordance with the draft laid in the Table Office on 21 June 2022.

Motions moved.

Diolch, Dirprwy Lywydd. There are three sets of regulations being debated under this motion today. Members will be aware that I had originally also tabled a set of consequential amendments to primary legislation as part of this package of subordinate legislation, but, given the number of reporting points received from the Legislation, Justice and Constitution Committee, I have withdrawn that statutory instrument so that the necessary corrections can be made. I will retable it, hopefully later this week, so that it can be debated as soon as we return in September.

Turning to the three SIs that we are considering today, I will take a few moments to explain as concisely as I can the purpose and effect of each of these, although Members will appreciate that, as is often the case with subordinate legislation, some of the provisions are quite complex and technical, so please indicate if there's anything that's unclear and I will do my best to clarify it.

I will start with the Renting Homes (Wales) Act 2016 (Housing Association Tenancies: Fundamental Provisions) Regulations 2022. This SI will ensure that housing association tenancies that currently benefit from rent protection will retain that rent protection when converted into occupation contracts.

Next, the Renting Homes (Wales) Act 2016 (Amendment of Schedule 12) Regulations 2022. Schedule 12 sets out arrangements for current tenancies and licences that will convert into occupation contracts when the 2016 Act comes into force. The purpose of Schedule 12 is to ensure that this transition is as seamless as possible and that the parties to existing tenancies and licences are treated fairly when their tenancy or licence converts into an occupation contract, with the correct balance being struck in respect of both parties' rights and obligations. To this end, the amendments being made by this SI include protecting the existing rights of 16 and 17-year-olds who currently hold certain types of tenancy or licence; provisions ensuring, amongst other things, that current tenancies and licences relating to supported accommodation will convert into occupation contracts and that any tenancy or licence relating to supported accommodation that has already been in place for more than six months cannot convert into a standard supported contract; providing for starter tenancies to automatically convert into introductory standard contracts; ensuring that a landlord is only liable to pay compensation in relation to any failure to provide the contract holder with information on the protection of any deposit paid in relation to a converted contract that was, before conversion, an assured shorthold tenancy; ensuring that where a converted contract was, before conversion, an assured shorthold tenancy that included a rent variation term, that term will be carried over into the converted contract and not be supplanted by the rent variation term at section 123 of the 2016 Act; protecting as far as possible the rights of any current holder of an assured agricultural occupancy; and ensuring that for fixed-term tenancies, where the fixed term ends after 1 December and the contract becomes periodic, the six-month no-fault landlord's notice will apply to that contract.

Finally, the Renting Homes (Wales) Act 2016 (Amendment) Regulations 2022. These make a series of amendments to ensure that certain kinds of accommodation related to bail or probation, or to immigration and asylum, are not occupation contracts. This effectively maintains current arrangements for these types of accommodation.

I have noted the points raised by the LJC committee in relation to all three of these SIs, and my officials have made the changes necessary where required. I've also responded to the committee in writing on those points requiring a Government response. Can I pass on my thanks, as ever, to the committee and its support staff for their diligent and comradely approach, which has been much appreciated?

Dirprwy Lywydd, that concludes my opening remarks. I will do my best to respond to any points that Members wish to raise, and I will say a little more about what will be happening next, ahead of implementation of the Act in December, in my closing remarks. Diolch.

I call on the Chair of the Legislation, Justice and Constitution Committee, Huw Irranca-Davies.

Thank you, Dirprwy Lywydd, and thank you, Minister. We considered this suite of regulations during our meeting yesterday and laid our report straight after.

Thank you, Minister, for your kind comments about the work that we've done and the engagement that you've had with us on this. In respect of your opening remarks, we do love 'technical and complex'. The suite of regulations today is part of the third tranche of subordinate legislation required to support the implementation of the Renting Homes (Wales) Act 2016.

Our technical reporting point across all three regulations concerned a drafting matter related to the Renting Homes (Wales) Act 2016 (Amendment) Regulations 2022, namely that the provision of the Act that requires regulations to be subject to the affirmative procedure has been omitted from the preamble and the headnote. We note that the Welsh Government response agrees with this point and states that as the error is technical in nature, a corrected version will be used on making.

We noted that each set of regulations was not subject to consultation and we raised these as merits points. The Minister explained, in response, that this was because the amendments again were technical in nature. Specifically, as regards the amendment regulations and the amendment of Schedule 12 regulations, the Minister told us that that this was also due to the fact that none of the amendments they contain make any substantive changes to policy positions set out in primary legislation. Our report also highlighted that several issues addressed by the amendments were raised with the Welsh Government by external stakeholders seeking clarification on the application of the legislation and were discussed with them.

The regulations subject to the debate today are all being made using Henry VIII powers, as they amend primary legislation. In raising this as a merits point for the amendment regulations and the amendment of Schedule 12 regulations, we drew attention to the Stage 1 report of our predecessor committee in the fifth Senedd on the Renting Homes (Amendment) (Wales) Bill, which sought clarification on the justification for the inclusion of Henry VIII powers in that Bill. The clarification provided by the Minister at that time is included in the respective reports.

We have also reported on the Renting Homes (Wales) Act 2016 (Consequential Amendments) Regulations 2022, and our report raised a significant number of points. Whilst I acknowledge, as the Minister indeed said in her opening remarks, that they have been withdrawn from today’s agenda and will not be voted on today, it may be helpful if the Minister could clarify whether there is any impact on this suite of regulations and the implementation of the 2016 Act as a consequence of the withdrawal. Diolch yn fawr iawn, Llywydd.

The Llywydd took the Chair.

I'll refer Members to my own declaration of interest form in terms of property ownership. Thank you.

I will start by referring to the housing association tenancies fundamental provisions. Now, whilst I note there were no matters of special interest to the Legislation, Justice and Constitution Committee, I am pretty disappointed that there has been not too much consultation with our much-valued housing associations. On one hand, I acknowledge that these are only consequential technical amendments, but they will have a direct impact on housing associations.

However, the Minister will be pleased to learn that we do not object to subsection 2A. We will be abstaining on these. In fact, I think it reasonable to expect that where a housing association tenancy is a secure or periodic standard contract, the rent payable to the landlord may be increased from the beginning of any rental period by a written notice specifying the date not later than four weeks.

I can't see how subsection 2B is fair. If we look at housing association properties, in my own constituency, in Aberconwy, Cartrefi Conwy have a wide-ranging portfolio, but some flats and houses are exactly the same. So, therefore, whilst I acknowledge that the effect of subsection 2B would only be temporary, meaning that a notice of increase does not take effect if before the date specified in the notice the contract holder gives notice to end the contract, should the tenant still be resident for a period after the date when the rent should have increased, I believe, on a point of fairness, that the tenant should still be liable for the higher rent, or you're going to have the people who are staying on actually paying more rent than anyone who serves their notice. So, given that there are elements of the housing association tenancies that I agree and disagree with, we will be abstaining on these regs today.

Turning to the two other regs, amendment and amendment to Schedule 12, I am concerned about the amendment to Schedule 8A. Schedule 8A lists those types of standard contracts that can be ended with two months' notice under a landlord's notice or break clause, rather than the six-month notice period that applies in relation to all other standard occupation contracts. I actually believe that landlords should be able to end standard occupation contracts within two months, not six, so we cannot support the amendment to Schedule 8A. So, we will be voting against, but I really do think there is an urgent need for you, Minister, to perhaps more widely—.

I will acknowledge that we had a very good meeting last week with Propertymark and other agents, but we've got some really valued private sector landlords, registered social housing landlords, providing properties, and the last thing I want to see is people in my own constituency and across Wales losing out because private landlords are deciding to go into a more lucrative holiday-let sector, losing out and ending up in temporary accommodation. We have far too many people now in temporary accommodation, and not for just a few weeks, but for several months, and pushing people out of the rented sector is going to just make things worse. I spoke with a stakeholder today, even, with 250 properties in Wales, 100 in England, who is now considering just getting rid of the portfolio in Wales and moving over to England, because he finds that the regulations in Wales now are becoming so top heavy that it's just—. They can go and do it elsewhere in the UK and provide good-quality housing.

So, it is stated in one of the explanatory memoranda that:

'Due the technical nature of these two SIs and the fact that none of amendments they contain make any substantive changes to policy positions set out in the primary legislation, no formal consultation has been undertaken.'

And that worries me: no formal consultation has been undertaken. However, it goes on to explain that:

'Detailed discussions have taken place with relevant stakeholders to explore these matters and have informed the development of the amendments.'

So, Minister, will you advise us here today who you have engaged with and whether you believe that there's more engagement needed across the wider sector? It's this lack of transparency that I'm concerned about, that detailed discussions with some chosen stakeholders have taken place and they've obviously helped influence the regulations. It would be nice to unravel that a little bit and find out why there's been no formal consultation. We have to see complete transparency within this industry as to which stakeholders you met with. Have you done it on an all-Wales basis? Because, clearly, as a north Wales Member—.

So, therefore, Minister, thank you for bringing these regulations forward, but we will be abstaining on item 6 and voting against items 8 and 9. Thank you. Diolch.

Mabon ap Gwynfor.

Thank you very much, Llywydd, and I also want to declare an interest that's on the public record too.

This discussion comes at a time when the housing crisis is getting worse and worse, day by day. Renters and landlords alike live in worry for this growing crisis, with landlords fearing many will sell up and stop renting homes due to the new regulations, and tenants facing the threat of eviction. So, let's have a reality check.

At the moment, roughly 500 people a month can be moved into permanent accommodation. With Ukrainian refugees as well, there are around 10,000 people trying to find a permanent home in temporary accommodation at the moment. Indeed, research from the Bevan Foundation recently suggested that a rising number of people in Wales were at risk of homelessness because of a shortage of affordable properties. Data collected from 1,775 rental adverts across Wales indicated that only 24, or just 1.4 per cent, were at a price fully covered by the housing allowance. There were previously thought to be 130,000 landlords, but notwithstanding the response of the First Minister earlier to a question today, Rent Smart Wales say that the real figure is thought to be only 90,000. The private rented sector is so bad, the number of properties available is dropping all the time. That's one of the reasons why we're seeing rents go up so much; it's down to supply and demand.

The journey of the renting homes Act through the Senedd has been marked by delay after delay, while renters have been left to fend for themselves in an increasingly hostile climate. In reaction to the delay in implementation, Shelter Cymru said the delay had been a great surprise with no-fault evictions doubling over the past 12 months, primarily due to house sales. In this regard, the toxic combination of a UK house-price bubble and major rules may be extra impetus to some landlords who are already thinking of getting out of the game, is what we are told.

While we'll be voting in favour of the regulations today, because we're certainly supportive of the Act and want to see it implemented successfully, we also need to be clear that the Act doesn't go far enough. We welcome the commitments in relation to housing in the co-operation agreement and are determined to work collaboratively to deliver for tenants across Wales. We are moving, albeit slowly, in the right direction in Wales, and it's up to the Government to ensure that help reaches those who need it most as soon as practically possible.

The Welsh Government needs to look into the banning of huge requirements for renters, such as huge deposits, or the need for wealthy guarantors, which prevent them from securing accommodation. Further to this, Government should help establish tenancy unions for knowledge and support to help renters, enabling people to know their rights and access them. Most of all, the Welsh Government needs to address supply and affordability issues. We need to build tens of thousands of social homes. While vital work is under way to regulate phosphate levels in rivers, one unintended consequence is that it has effectively brought social housing development in affected areas to a standstill.

Twenty-five social housing schemes designed to provide 666 homes in total are not progressing. They should have taken between 12 and 24 months to complete, but now some housing associations are predicting that the developments will take three to four times as long. Some housing associations warned that it's possible that the schemes may have to be abandoned all together. As costs keep increasing during the delay period, some schemes may become unviable. Across these schemes, £22 million in total has either already been spent or is at risk. In one housing association alone, it's highly likely the first scheme will be aborted this financial year with a spend of nearly £50,000.

In response to this debate, the Minister should clarify how the Government aims to put an end to this deadlock and actually deliver on targets for social housing construction while safeguarding the climate. Further to this, the Minister should outline how tenants will be protected from eviction in the interim until the winter. And finally, I'd like to know how the Welsh Government are responding to the growing trend of landlords selling rental properties, which is inducing a scarcity of available properties and driving up rental costs. Diolch yn fawr iawn.

The Minister to reply to the debate, Julie James.

Diolch, Llywydd. In conclusion, I would like to thank Members for their support, I hope, in voting for these. I'm very disappointed, but not surprised, that the Tories don't see fit to support amendments designed to protect tenants' rights—no surprise there, really. Although it is disappointing that we can't get consensus on this.

Llywydd, we are now very nearly there in terms of implementation of the renting homes Act. I will shortly be making three further implementation SIs, which, again, are technical in nature, and are being made via the Senedd's negative procedure, so will not be subject to Senedd debate, and I'll publish a further written statement explaining the purpose and effect of these. 

As I mentioned earlier, I will also shortly be relaying the consequential amendments SI with the necessary corrections made to that instrument, hopefully later this week, so that we can debate that last SI in September. And just to confirm that there will be no impact on the implementation date as a result of the withdrawal of the consequential amendments regulations, nor is there any impact on the three that are here today, because they're stand-alone SIs implementing different parts of the renting homes Act.

And then, just addressing some of the issues that Members have raised in particular on these SIs: housing association tenancy regulations are about a relatively small sub-set of tenancies, and the regulations are about preserving the existing arrangements, Janet, and not about changing them. I would have thought you'd welcome that, actually. These particular amendments are about preserving the existing arrangements, and not having the renting homes Act bite on those existing arrangements.

On six-month notices, our principle is that someone not at fault should have at least six months' notice of possession. Schedule 8A sets out some limited exceptions, for example, where there is a service occupancy for employment purposes only. 

In terms of private landlords threatening to leave the sector, this is something that's raised with me every single time we discuss housing. It's just no worse here than it is anywhere else. Interestingly, the UK media are reporting a similar anticipated exodus of private landlords in England as a result of the house price rises there, although, of course, in England it's impossible to know, because they don't actually have an equivalent to Rent Smart Wales. And so, we're actually in a better position here, because we do have contact with all our landlords, and we know where they are.

Just in terms of the stakeholders that we've engaged with, they include the National Residential Landlords Association, Propertymark and Community Housing Cymru, representing associations. My officials attend regular meetings with those bodies, and obviously NRLA and Propertymark are in the PRS. On the consultation point, the regulations focus primarily on preserving and protecting existing rights, so the consultation is on the wider Act.

Rent Smart Wales data does not show landlords leaving the market in significant numbers actually. There is a slight drop, but not more than anticipated by Rent Smart Wales at this time of year. They think that it's to do with some landlords being late in registering, and so on. There are more significant drops in a few tourist hotspots, but we can't be really sure if they've flipped to short-term holiday lets, so we're obviously keeping a close eye on that.

Mabon's contribution was extremely wide-ranging about the housing crisis more generally, rather than on these SIs in particular, and obviously, the whole point of the renting homes Act is to address some of the issues there. Of course, we have a 20,000 low-carbon social homes target to anticipate the supply and demand issue. I'm fully aware of the phosphate issue and there will be a summit on the first day of the Royal Welsh in the summer to see if we can reach a compromise across all of the very difficult issues that affect that. But those are not specific to these SIs, Llywydd, they're just more general points.

In drawing this to a close, I urge Members to support the regulations. They are largely technical in nature. As I say, I will shortly be making the further implementation SIs, which are the commencement proceedings, and therefore the implementation of the Act on 1 December is not affected. Diolch.

The proposal is to agree the motion under item 6. Does any Member object? [Objection.] Yes, there is objection. Therefore, I will defer voting under this item until voting time.

Voting deferred until voting time.

The proposal is to agree the motion under item 8. Does any Member object? [Objection.] Yes, there is objection. Therefore, I defer voting once again.

Voting deferred until voting time.

The final question is that the proposal is to agree the motion under item 9. Does any Member object? [Objection.] 

Nothing if not consistent, Darren Millar.

So, we will defer voting under item 9 as well.

Voting deferred until voting time.