6. The Renting Homes (Wales) Act 2016 (Consequential Amendments) Regulations 2022

Part of the debate – in the Senedd at 4:21 pm on 8 November 2022.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 4:21, 8 November 2022

I refer Members to the declaration of my own interest in terms of property ownership.

As the explanatory memorandum states, these amendments are necessary to implement the 2016 Act, to provide coherence and clarity, and to ensure consistency of the law. It is noted, however, that no formal consultation has taken place, as these regulations make only consequential technical amendments. Similarly, it is stated that no regulatory impact assessment has been produced to accompany the regulations. I acknowledge that the regulations are not expected to alter policy, but we now know that the impact of the Renting Homes (Wales) Act 2016 is severe and having several unintended consequences. We know from the National Residential Landlords Association that 26.8 per cent of landlords in Wales have sold property in the last 12 months, 49 per cent of landlords are planning to sell a property in the next 12 months, and landlord repossessions have been steadily increasing in Wales over the past year up to 150 in quarter 2 of 2022 compared to 78 in quarter 4 of 2021. It's obvious that regulations placed on landlords are now forcing them out of this commodity, and that is now, in effect, certainly in my constituency, placing more people in temporary accommodation on housing waiting lists.

Many aspects of legislation that landlords currently operate under are changing drastically, from extended no-fault notice periods, extended succession rights, joint contracts and changes to their rights around abandoned properties. Currently, even with the two months requirement to give notice, constituents are approaching me where they've been advised by other agencies to stay put, even after landlords have taken them to court. For a two-month notice period, it can take four to five months. With a six-month eviction notice, with having then to go to court and then having to go again to court to get the bailiffs, we could be looking at landlords having 12 months with that property with no rent coming in. In some cases, there's damage to properties while people are being evicted. It is quite wrong. 

What this legislation represents is a large-scale change to the entire property rental market. Those working in the housing sector are making it clear to me that there is a huge increase in section 21 notices being issued ahead of this legislation coming into force. This, again, has been proven out by the number of constituents now sadly, desperately, coming in to me and saying, 'My landlord has given me notice to quit'. We've got 1,900 waiting in Conwy county borough for a roof above their head, and this just adds to the agonising situation. To be clear, this Act is resulting in more people losing their homes, more landlords pulling out of the rental sector, and more people becoming homeless. The figures are there; the statistics are there.

Here in Cardiff, landlords, letting agents and student groups have hit out at the growing crisis facing Cardiff's rental market, with properties sold off and more than 100 people fighting to secure every home listed. If you don't listen to me, listen to various letting agents in Wales who have stated that the new regulations are causing a supply crisis. As one landlord put it,

'I've been doing this for 23 years and I think the Renting Homes (Wales) Act 2016 is kind of the straw that breaks the camel's back.'

Property owners do not want to be trapped in this situation where they have to suffer a tenant not paying rent for six months before evictions and selling up. There is no scope or potential in any of the regulations that you have brought forward, Minister. There are dozens of good landlords, there are dozens of good tenants. However, in both sectors, there are situations where you do get bad tenants, I'm afraid, and you've made no allowance for this in any of your legislation or regulations.

Alongside devastating the rental sector, you're making it harder for people to get on the housing ladder. In fact, Nathan Walker, a sales director at CPS Homes, warned that by introducing regulations that deter landlords from the sector, rental prices will continue to increase alongside demand. Not so long ago, even last year, you could get properties for £700 or £850 a month. They're now being put—I see them on Facebook—at £1,200 plus per month. How on earth can you justify what is happening?

We will be voting against these regulations today. Continuing with this Act would just be further evidence that this Welsh Government is actually introducing policy that is making the housing crisis in Wales worse. And I can tell you now, I receive dozens of e-mails from across Wales, from tenants even, saying, 'The Welsh Government are wrong in this. I've lost my home, thanks to the Welsh Government.' So, I hope you're duly proud of that.