Leasing Scheme Wales, which allows landlords to rent out properties via their local authority, is to shut down in January.

The flagship scheme was set up and funded by the former Welsh Labour government and managed by individual councils. All 22 authorities have now signed up and there are at least 700 properties registered under the scheme, according to the NRLA.  

Launched in January 2022, it allows private landlords to lease properties to local authorities for periods of between five to 20 years. Councils manage the property, guaranteeing rental payments at Local Housing Allowance (LHA) rates, and offering grants of up to £5,000 to either improve the general standard of the home, or its EPC rating.

Plans

The five-year programme is due to end in the new year, with the new Plaid Cymru minority government currently having no plans to extend it, says the NRLA which reports that there have been ongoing concerns about how the programme could be impacted by uncertainty over LHA rates, which are set by central government.

It reports that the Welsh government says no further properties should be onboarded after December this year. It also confirmed there is no additional Welsh government funding available to extend the scheme, with the current administration looking at new priorities to meet housing need.

Decide

It adds that it is now up to local authorities to decide how they will manage the scheme beyond the current funding period and that, as closure is approaching, councils should be actively considering how they manage new expressions of interest from landlords.

Many landlords using the scheme are concerned about what will happen when the funding runs out – and calling for clarity so that they can start to plan, reports the NRLA. “Without government funding the programme is unlikely to continue locally, so if you are considering putting your properties forward, again, you should speak with your local council to find out what its plans are long-term,” it advises.

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