Part of the debate – in the Senedd at 5:25 pm on 12 October 2022.
I think you've just made a number of builders very happy, knowing you would welcome large-scale building in Cowbridge and the Vale of Glamorgan.
The UK Government's freeze on local housing allowances means that most people and families receiving local housing allowance rates face a gap between rates paid and their rent. This increases the risk of homelessness, as it becomes more and more difficult for people to keep up with paying rent, on top of covering essentials, such as food and energy bills.
Over the last 50 years, the housing mix has changed. There's been a decline in council housing and a large increase in the number of privately rented properties. The privately rented sector is now the second most common tenure after owner occupation. There's been a growth in the number of private landlords. Yes, I realise that all private landlords are not modern-day Rachmans. In fact, most private landlords are good landlords and treat their tenants well. A lot of these only own one property, and many of these were bought via a mortgage. Social tenants in Wales are already protected over the winter from rent increases, as social rents are set annually, with the next change in social rents not due until April 2023. Registered social landlords are facing huge pressures, especially where they have to refinance loans.
Superficially, freezing rents in the private rental sector is attractive, but it freezes rents as they are now, and some rents are too high and others too low, relative to properties of the same type. With interest rates rising, it could lead to properties having to be sold. If what happens is that the properties are sold and then bought by first-time buyers, that would be a great thing. Reducing the number of privately rented properties, increasing the number of owner occupiers: good. But, unfortunately, we have the wild west of housing, Airbnb, and that is what worries me, that people will take these houses from renting to families and put them into Airbnb. This removes the property from the housing market. When properties being sold are used as Airbnb in east Swansea, then this has to be a problem all around Wales.
Can I just quote from Crisis, which is something Mabon spoke about earlier, who are the major housing charity? An immediate flood of notices to quit and letters notifying of rent increases are what they fear would happen with what Plaid Cymru are putting forward today. Crisis would advise learning from the recent announcements of similar legislation in Scotland. During the delay between announcement and enactment, colleagues across the housing sector in Scotland reported tenants being issued with notices to quit and letters notifying them of rent increases.
I thought rent controls. I want rent officers to be brought back. Because landlords can evict tenants with a section 21 notice once the fixed term expires, Welsh tenants lack any real rent controls. The landlord can ask them to pay a higher rent and evict them, or find new tenants if they refuse. This demonstrates the ease with which tenants can be evicted and is intimately linked to the lack of rent controls.
A moratorium on evictions looks attractive, but could simply postpone evictions until it's lifted. If tenants decide not to pay rent to their landlords, they may accrue serious rent arrears that then provide a ground for eviction. From 1 December, new tenancies in Wales will be subject to a six-month no-fault eviction ban, and the Welsh Government are consulting on extending this to existing tenancies. I just think no-fault evictions should be ended now. Never should anybody be asked to leave for no fault. That is fundamentally wrong and it breaks the balance between landlord and tenant.
I'll finally come back to supply. With a shortage of supply and a strong demand, rents rise. The only effective solution is the large-scale building of council houses. It worked before and it'll work again.