The Welsh government has claimed it will build 20,000 social homes by 2030 and hinted at introducing rent controls. Speaking in the Senedd, Welsh First Minister Rhun ap Iorwerth stated the government would bring in legislation to help tenants and tackle landlords.
Mr Iorwerth told Welsh MPs that strengthening the private rented sector is a priority. He said that renters in Wales deserve a safe, warm, secure, and affordable home, and should feel confident challenging poor conditions. He added that the first phase of their legislative programme will deliver legislation to protect tenants and tackle landlords, aiming to make renting more secure.
When questioned about the high cost of renting, the First Minister hinted at plans to look at rent controls. He mentioned actively exploring different measures for regulating rent increases, citing examples from Scotland and Catalonia. He also noted that significant steps require considerable policy development, evidence gathering, and cross-party and cross-sector engagement, outlining an ambition for a second renters Bill as part of a two-phase legislative approach.
The Institute of Economic Affairs (IEA) suggests that while rent controls may initially lower rents for existing tenants, they typically lead to higher rents in uncontrolled sectors and reduce housing supply and quality. Data from Hamptons indicates that Scottish landlords are increasing rents at a faster pace than elsewhere in Great Britain, with rents rising by 11.6%, which has been attributed to rent controls reshaping the market.