Senedd elections: NRLA warns against rent controls

In historic elections for Wales, Plaid Cymru has emerged as the largest single party in the Senedd, although without majority control.

We expect that Plaid will seek some kind of agreement with one of the minority parties in order to form a working majority and be able to pass legislation.

Discussions around what that agreement looks like will take place over the coming days. Prior to the election, many expected the party would work with the Greens, although any working agreement would include compromises on policy positions in order to secure support.

Manifesto commitments to rent control

Both Plaid Cymru and the Green Party set out their support for some form of rent control in their Senedd manifestos.

Plaid committed to what is often referred to as rent stabilisation: ‘Fair rent-setting – through limiting annual rent increases to the lower of wage growth or consumer price index inflation, or a clearly defined equivalent benchmark.’ 

The Greens however went further, calling for a freeze on rents, followed by the introduction of ‘Rent Pressure Zones’, with increases only permitted where landlords ‘deliver genuine improvements to homes’.

Rent controls “would be a disaster for renters”

We are opposed to any form of rent control, which would only serve to disincentivise investment in the homes renters need.

Commenting following the vote, our chief executive, Ben Beadle, said:

“Rent controls would be a disaster for renters and the Welsh private rented sector. These measures will reduce the supply of private rented accommodation at a time when Wales is suffering from an unprecedented supply crisis.

“Wherever rent controls have been introduced they have failed and, in this case, would not address the root causes of high rents – the spiralling costs investors face, which are passed on to tenants through increased rents.

“Whatever the outcome of coalition negotiations, we look forward to working with ministers in the next Government to ensure Welsh landlords’ concerns are taken into account.”