A leading letting agent in Wales has told LandlordZONE that the additional regulation of landlords in his country, which is due to tighten even further later this year, has not been the disaster that many predicted.

Since the end of November 2015 landlords and their properties have had to be registered and, if they self-manage a property in any way, licensed as well.

Soon landlords will face new measures being introduced on December 1st by the Welsh Government, including six-month notice periods prior to an eviction process starting; a whole new lexicon (e.g. ‘contract holders’ rather than ‘tenants’); and being prevented from enacting break clauses during the first 18 months of a tenancy.

But Ricky Purdy (main picture) of Swansea-based agency Dawsons Property says that despite this blitz of new regulation, and higher stamp duty for landlords, the biggest reason for his clients leaving the sector has been rising prices leading many to cash-in and the looming EPC upgrade challenges due in 2025 and 2028.

“I’m all for landlords in Wales deciding to sell their properties or downsize their portfolios if they think that’s the best outcome for them given the current – and the own – circumstances, but there’s a lot of scare-mongering headlines out there right now and it’s making them focus on worst-case scenarios,” he says.

“We try and work with our landlords to offer up solutions such as re-financing and/or restructuring their portfolios, in general focussing on the positives rather than getting rattled by the potential negatives.”

Purdy says the changes have affected landlords with just one or two properties more, while the more ‘purposeful’ professional landlords with large portfolios have taken the changes in their stride.

New legislation

“I understand what the Welsh Government is trying to do with the new legislation,” says Purdy.

“It’s not a ‘levelling up’ thing in my mind but just the Government making renting fairer for tenants, and in return making it quicker and easier to evict the bad, bad, rogue tenants, as England is planning to do as well.

“The biggest headache for landlords and agents alike is the paperwork needed to transfer everything over to the new rules, but I also get that some landlords are frustrated that after December 1st tenants will be able to move around willy nilly, but landlords will have to wait six months or longer before they can ask a tenant move out.

“We’re in uncharted territory really. But I think landlords on both sides of the border are just going to have to accept these changes and get on with it and do the legwork to make it work – but I can understand it will persuade some of them to leave or slim down their exposure to the sector.”






 

3 COMMENTS

  1. A Lettings Agent suggesting that Landlords don’t leave the sector – fancy that.

    The overwhelming chatter amongst landlords is entirely the opposite of his view and they’re leaving as fast as they can – and I don’t blame them one bit.

    Maybe when the Welsh Gov have to suddenly house everyone, the English Government might start to see some sense.

  2. I agree that EPC C is by far the bigger threat – I have already sold 1 & another is on the market. Until there is clarity over this, and with an eye to the loss of S21 without proof of adequate S8 and with the negativity surrounding being a small LL, I will continue to put properties on the market.

    The irony is that IMO there has never been a greater need for small LLs – 10,500 Afghans still in hotels, 100,000 Ukrainians needing homes in the next 6 months or so, 1 million on social housing waiting lists – it seems quite bizarre to me that when it is clear the PRS is heading for a crisis the Govt continues to rush towards the precipice like a pack of lemmings!

    • The problem is that our Government are TOTALLY CLUELESS when it comes to the housing crisis we’ve had for many years.

      Only today, local authorities are being urged to find housing for those 10,000 Afghans in hotels – Government clearly think there are several thousand homes just sitting empty around the Country not being used.

      Astonishing.

      https://www.bbc.co.uk/news/uk-62393625

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