Part of the debate – in the Senedd at 4:37 pm on 12 July 2022.
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.