Item 6 this afternoon is the Renting Homes (Wales) Act 2016 (Consequential Amendments) Regulations 2022. I call on the Minister for Climate Change to move the motion. Julie James. 

Motion NDM8117 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 (Consequential Amendments) Regulations 2022 is made in accordance with the draft laid in the Table Office on 11 October 2022.

Motion moved.

Diolch, Dirprwy Lywydd. These regulations are part of the final set of statutory instruments I am laying as we move towards implementation of the Renting Homes (Wales) Act 2016 on 1 December. The statutory instruments, including the Renting Homes (Wales) Act 2016 (Consequential Amendments) Regulations 2022 that we are voting on today, are essential to the operation of the 2016 Act.

As I have said previously, the Act will transform the renting of homes in Wales. It will significantly improve the rights and security of tenants, and create a much clearer legal framework for landlords. Implementation of the Act is also a commitment in the co-operation agreement with Plaid Cymru.

I am grateful to the Legislation, Justice and Constitution Committee for reporting on these regulations, and also for the minor drafting points raised. The Welsh Government has responded to the formal reporting points and, where possible, the minor drafting points will be corrected on making, to ensure that the law is accessible and clear to the reader. None of these change the meaning of the draft regulations that Members are being asked to approve today. 

The regulations make amendments to other primary legislation in consequence of the provisions of the 2016 Act. Generally, these amendments ensure that existing provision in primary legislation continues to have appropriate effect, either by referencing the relevant occupation contracts alongside references to existing types of tenancies, or by replacing existing terminology with the terminology used in the 2016 Act. The regulations therefore ensure that existing provisions are adjusted, to work in combination with the provisions of the 2016 Act or, where the existing law is incompatible with that set out in the 2016 Act, by disapplying that law. These amendments are necessary to implement the 2016 Act, provide coherence and clarity and ensure consistency of the law. I ask Members to approve the regulations. Diolch.

I call on a member of the Legislation, Justice and Constitution Committee, Alun Davies.

I'm grateful to you, Deputy Presiding Officer. I'm speaking this afternoon on behalf of the committee. We considered the regulations during our meeting yesterday. As the Minister outlined, we reported immediately afterwards.

The Minister has already outlined that these regulations form part of the suite of subordinate legislation required to support the implementation of the Renting Homes (Wales) Act 2016, and I think we all very much welcome the way in which the Minister has brought forward these regulations. She will be aware, and Members will be aware, that we have reported on two previous versions of these regulations. The first version was laid before the Senedd on 21 June and subsequently withdrawn, following the report of our committee. An amended version was then laid on 15 July, before being withdrawn in October, again following the report of our committee. The further amended version is the subject of today’s consideration. The Minister has, on each occasion, gone away and taken on board our comments before bringing back revised versions, and we're grateful to her for that.

Our report on the version of the regulations being considered this afternoon contains two technical points and two merits points. In brief, Deputy Presiding Officer, as regards our merits reporting points, various parts of the regulations come into force once provisions in the Housing and Planning Act 2016 come into force. Neither the explanatory memorandum nor the explanatory notes give any indication as to when these provisions are expected to be brought into force. We made this point previously when we reported on the earlier drafts of these regulations. In its response to us in July, the Welsh Government told us that it does not have any information about when the relevant provisions of the Housing and Planning Act will be brought into force. Our second merits point highlighted that no consultation had been carried out in relation to these regulations.

Moving on to the technical reporting points, Deputy Presiding Officer, our first technical point sought clarification as regards the intention of the drafting in regulation 32 in the way it amends the Energy Act 2011. I thank the Minister for providing that clarification to us ahead of our consideration of the regulations yesterday, so that it could be included in our report, which has been laid before the Senedd.

Our second technical point highlights the drafting that appears to be defective. To give some context to our concern, it relates to how these regulations interplay with the Leasehold Reform, Housing and Urban Development Act 1993 and the Housing (Wales) Act 2014. I will seek Members' patience in attempting to outline our concerns here. In our report on an earlier draft of these regulations, we noted that regulation 34(2) included a reference to 'the tenant’s share', but that it appeared that the text should read 'the tenant’s total share', because 'total share' is a defined term in section 7(7) of the leasehold reform Act. Later in the regulations, at regulation 35(4)(a)(iii), 'the tenant's total share' is used. The Welsh Government has disagreed with us and said that the current drafting reflects the wording in the definition of 'domestic tenancy' set out in section 2 of the 2014 housing Act. The definition of 'domestic tenancy' in section 2 of that Act includes a reference to

'the tenant's share (within the meaning given by that section)', which again refers to section 7(7) of the leasehold reform Act. For that reason, Deputy Presiding Officer, we are concerned that the reference to 'tenant’s share' in the 2014 housing Act may also be incorrect. As such, it is unclear to us how the reference to 'tenant's share' in regulation 34(2) is correct.

The Senedd may wish to be aware that the Welsh Government remains of the view that the meaning of 'tenant's share' in the definition of 'domestic tenancy' in the 2014 housing Act is clear within the context of that provision, and that regulation 34(2) simply makes amendments to that definition of 'domestic tenancy' that are consequential upon the renting homes Act.

I recognise that these are quite technical matters that are certainly taxing me in reading it out. I hope that Members will appreciate that it is important that we're able to resolve these matters before the regulations become law. We're grateful to the Welsh Government for the way in which they've worked with us to ensure that there is a comprehensive and agreed understanding of these matters. I'm grateful—thank you.

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.

The Llywydd took the Chair.

The Minister for Climate Change to reply.

Diolch, Llywydd. I commend these Renting Homes (Wales) Act 2016 (Consequential Amendments) Regulations 2022 to the Senedd and ask Members to support them so we can implement the Renting Homes (Wales) Act 2016 in December. [Interruption.] Perhaps if you ever listen to anything I said, Janet, you would understand—

Let's listen to the Minister.

Sorry, Llywydd, I beg your pardon.

No, no, you don't need to beg my pardon. Other people in the Chamber need to ask for that. You carry on, Minister.

As I was saying, Janet, perhaps if you ever listen to anything I said, as opposed to reading out your pre-ordained speech, you would know that voting against these regulations will not stop the implementation of the Act—it will simply mean that the Act doesn't work as intended. So, that's an idiocy, quite frankly. If you were successful in stopping these regulations going through, you'd not stop the Act being implemented—you would simply stop it operating in the most efficient way possible.

The various things that you quote, I have to say, are a misrepresentation of what the Act actually says. If you have tenant who has damaged property, then, obviously, they aren't subject to the extended no-fault evictions—you can evict them for damaging the property. If you have a tenant who hasn't paid rent, they are not subject to no-fault eviction—you can evict them for not paying rent. What you're saying is an absolute nonsense, just to be clear.

Turning to the rather more practical, albeit very technical, comments made my colleague Alun Davies, just to be very clear, Alun, that we absolutely appreciate the work that's been done by the committee and the speed with which you've done it. And just to reiterate that to the extent possible, without making substantive changes to the version of the SI that has been laid before the Senedd, the draft SI has been adjusted to deal with the technical points that you raised. So, just to be clear, it will be corrected upon the making of the regulations.

In the light of that, Llywydd, I commend these regulations to the Senedd.

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

Voting deferred until voting time.