Many experts claim most landlords shrug off attempts to make renting riskier or more bureaucratic if it’s still a moneymaking exercise, but the Welsh government’s recent efforts to complicate its PRS seem to be digging deeper.

Latest figures from trade body Propertymark show that its Welsh letting agency members report five landlords per branch withdrawing from the market, more than twice the national average and far higher than any other region.

The trade body says the most likely cause of this is the Welsh government’s plans to extend notice periods, along with other restrictive measures, within its Renting Homes (Wales) Act due to be implemented later this year.

This includes an already-in-place six-month notice requirement for a landlord to end a contract where the tenant is not at fault and a minimum ‘security of tenure’ of one year from the date of moving in.

Surveys

Also, this is the first time that Propertymark has begun to report the number of landlords leaving the sector. Its surveys in recent years have made little or no mention of this, so it is significant that it is now a key metric in the latest one.

The trend is already having repercussions for tenants. Letting agents report that while landlords are exiting the market, tenant demand for properties remains high and in Wales, they saw 313 applicants per branch, a trend mirrored across the UK.

nathan emerson fraud

“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords will be faced with further regulatory pressure,” says Propertymark boss Nathan Emerson (pictured).

“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.

12 COMMENTS

    • Don’t know if this comment is meant to be sarcastic or simply delusional ?

      The effect of the bureaucracy on supply and demand has meant me putting a re-let on for a three figure rent increase last month, but despite this the tenant enquiries were also heading into three figures!

      No points WAG ramping up rights for their ‘tenants’ when they can’t even become tenants !

  1. Money, Money, Money – bring it on (again)

    The more difficult they make it, the more Landlords leave the PRS, the fewer properties there are = Ka-ching, rents go up.

    If you have a modern property (EPC-C+) then you have little to worry about.

    The time is coming when potential Tenants will have to produce a “Tenancy Application Pack” to even have a sniff at renting a property.

    My only concern is if all these thousands of potential tenants all decide to move into a Local Authority or Social Housing property instead hahahahahaha that’s not going to happen any time soon is it.

    So, don’t let all the nonsense faze you – just look forward to being extra choosy and picking the very best tenants from a huge swathe of them.

    Shelter will house all the ones who are in sleeping bags outside their office doors of course. Hahahahaha there I go again.

    Life is Good (well it will be for us “greedy landlords” anyway).

    • I’m sort of with you on this one. Whilst I do moan about the increased legislation and compliance, on the positive side landlords leaving the PRS means those left in the market face less competition. In fact, I’d go so far as to say that landlords should be careful what they wish for. If the government does a 180 and starts encouraging landlords we’ll be back where it was a few years ago where the BTL sector was becoming saturated. I’d rather have to spend a bit more time on compliance than have to worry about extended voids.

    • The ‘tenancy appliction pack’ is a great idea! To some extent it is already happening in the South West where 80+ applicants wanting to let a property and letting agencies asking the ‘shortlist’ of most suitable tenants – professional, in good jobs, reference from previous landlords – to write a letter to the property owner stating why they should pick them. Well done Tory government.

  2. The story misses the point of why landlords are looking to leave the sector. When our legal advisors have looked at the details ( or lack of details) within the new occupation contracts there are some very fundamental changes and the welsh lawmakers are looking to remove fundamental property owners rights-
    1- the ability of the tenants to move another person in without the landlords permission
    2- the creation of succession rights if a tenant moves or dies
    The actual regulations of electrical safety certificates and co2 detectors are irrelevant to quality landlords but our property rights are under threat. The warnings are there if landlords care to look. This isn’t about money this is much more sinister

    • Agreed. “You will own nothing and be happy”. It’s no longer a whacky conspiracy theory.

      Thank God I’m now out of it. Our masters clearly want all housing to be under the control of their large corporate friends. Small LLs & property ownership will be a thing of the past.

    • Surely lenders will refuse to lend if such tenant rights are introduced.

      Allowing an occupant with LL permission not required could result in a Mandatory HMO licence being required.
      Breaching mortgage conditions and massive fines by councils.

      It is NO surprise that Welsh LL are getting out of AST lettings.

      Welsh rental policies will cause LL to get out of AST lettings.

  3. One part of me wish this not turn into the announced disaster as many would suffer from it, but another part of me hope this will turn out to be an absolute epic shitshow with Welsh LL leaving in droves and PRS becoming hell in Wales so that the English gov realises that the constant LL-bashing is actually a long term suicide and eventually changes his mind and goes for a much more realistic EPC D target.

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