The Welsh government has announced plans to reform the private rental sector, with proposals that could give renters stronger legal protections and limit rent increases. The new government, formed by Plaid Cymru after the May Senedd election, has pledged to reform the sector in line with its manifesto.
Proposed reforms include limiting the amount of rent landlords can ask tenants to pay in advance, banning rental bidding, capping annual rent increases, and giving renters a legal right to request a pet. The government also plans to bring forward legislation to end no-fault evictions in Wales, which currently allow landlords to issue evictions with six months' notice.
No-fault evictions were abolished in Scotland in 2017 and in England on 1 May this year. The reforms mirror those included in the Renters' Rights Act, which is changing the private rental sector in England. However, plans for rent controls would go further than the reforms in England.
Scotland has already passed legislation allowing rent control areas to be introduced where rents are rising significantly. If introduced, rent controls in Wales would limit rent increases to CPI plus 1%, up to a maximum of 6%, and would only allow landlords to increase rent once every 12 months.
The Welsh government has set out its legislative proposals for the next four years, but did not provide a detailed timetable for when the changes could take effect. The government has indicated that reform of the private rental sector will happen in stages, with the first phase focusing on strengthening the enforcement framework and enhancing the regulatory role of Rent Smart Wales.