Propertymark has urged the Welsh government to avoid policies that could deter investment, specifically warning against the introduction of rent controls. The industry body made these recommendations in response to the Senedd’s local government, housing and planning committee consultation on priorities for the Welsh housing sector.
The organisation stated that increasing the supply of homes should be the primary focus, alongside maintaining a well-regulated private rented sector. This warning follows hints from Welsh First Minister Rhun ap Iorwerth about introducing rent controls and a pledge to build 20,000 social homes by 2030.
Propertymark argues that rent controls would reduce supply and deter investment, citing evidence from Scotland and wider international research. The body also highlighted research indicating that 95% of letting agents in Wales believe rent controls would decrease the availability of privately rented homes.
The industry body also called for a pause on further significant legislative changes to allow for the assessment of existing reforms. It also recommended reviewing Land Transaction Tax (LTT), including reducing higher rates on additional residential properties, to encourage investment in the private rented sector.