7. Will the Welsh Government commit to freezing rents and suspending evictions to help tenants through the cost-of-living crisis? OQ58395

Thank you. Since November 2021, we have announced £380 million of funding to help Welsh households manage the cost-of-living crisis. On 1 December this year, the law will change to provide better protection and clearer rights for tenants in Wales.

Okay, thank you. Earlier this month, the Scottish Government committed that they would be freezing rents and suspending evictions to help tenants through the cost-of-living crisis. This year, Wales has seen the highest increase in the cost of renting outside London, with rents up to an eye-watering 13.9 per cent increase, on average. This comes alongside rising fuel, energy and food prices, which are hitting people across Wales in the pocket. Does the Minister agree with me that Welsh Government could act as soon as possible to ensure that tenants are not pushed further, through evictions and rent increases? I understand that social housing rent is set on an annual basis, and if something could be done at least until the end of March next year to help them through winter, it would be really appreciated, just as the Scottish Government are doing.

Thank you. I am aware that the Minister completely understands the calls for urgent action on rent control. But I think it's absolutely vital that any steps that the Welsh Government takes to address the issues don't lead to a reduction in the private rented sector or a potential rise in homelessness. I think unintended consequences must be obviously avoided.

The Minister has asked for some research to be undertaken, because I think you need that stronger evidence base before you bring in any new legislation. So, that research has been commissioned to make sure that she has that robust evidence base, so that she can understand fully the potential impact of any measures that the Welsh Government should take. Welsh Government's also committed to publishing a White Paper on new approaches to affordable rents for local people on local incomes, and a right to adequate housing, and obviously that forms part of the agreement with Plaid Cymru in relation to the co-operation agreement. I mentioned in December that the legislation would come into force and the minimum notice period for no-fault evictions for new tenants will be increased to  six months, and the Welsh Government's currently consulting on extending the minimum notice period to existing tenants. That again would increase the security of tenure.

Minister, while the idea of rent controls and suspending evictions may seem like a good idea to help people, history shows us that it's not a good solution to fix the problems that we currently face. In 2017, the Irish Government brought in rent controls, and that led to a housing shortage, higher rents due to loopholes and landlords withdrawing properties from the market. The reason why rents are so high is because we don't have enough houses here in Wales. We need to prioritise house building to increase supply and reduce demand. So, does the Minister agree with me that if rent controls are introduced, we will potentially see a rise in homelessness and more rental accommodation being put on the open market, as landlords leave the sector, thus compounding the issues we currently face?

Well, the Member will have heard me say in my answer to Carolyn Thomas that I think it's really important that we don't have unintended consequences. And one of the things I think that could happen is that you could see landlords exiting the market in large numbers, and that, therefore, would reduce the supply of property, which could lead to significantly increased homelessness. There are other potential unintended consequences as well. If you look at international evidence, you will see that rent control measures can create a target rather than a cap, and I think, again, that's a very important thing to avoid. Obviously, the Welsh Government's priority is the 20,000 new houses for the rented sector over the term of Government.