A lettings agency chief says there’s growing discussion about rent controls in his area - and he fears this may be a growing national trend under a Labour government.
Melfyn Williams, director of north Welsh agency Williams & Goodwin The Property People, says: “The Welsh Assembly, through Rent Smart Wales, continues to regulate the rental market with a focus on improving standards and tenant rights. The Labour UK government’s policies are likely to align with these goals, potentially introducing more stringent regulations and enforcement measures throughout the UK.”
Williams notes that there is growing concern about the introduction of rent controls. While aimed at protecting tenants from exorbitant rent hikes, he believes that such measures could further discourage landlords, exacerbating the already reduced supply of rental properties. However, for new landlords, this could mean less competition and higher rental income potential.
Another aspect impacting the rental sector is the growing regulatory burden imposed on landlords.
“The increasing burden of regulation is prompting many landlords to sell up. This trend is reducing the supply of rental properties, leading to significant rent increases. While this is challenging for tenants, it creates opportunities for new landlords who can navigate the regulatory landscape and capitalise on rising rents and reduced void periods” Williams comments.
Looking at current market dynamics, Williams says that there is a reduced supply of rental properties, leading to higher rents and a competitive market. “Properties are being snapped up quickly, often with multiple applicants vying for the same home. These dynamic benefits landlords, who can command higher rents and enjoy shorter void periods” he adds.
Williams - whose agency is in the Guild of Property Professionals - says that the market conditions present opportunities for new landlords. With rising income levels and high tenant demand, those entering the market can achieve attractive returns. However, they must be prepared to comply with stringent regulations and potentially navigate rent controls.
He notes that there are some challenges facing tenants, due to rising rents and limited availability. “This situation underscores the need for balanced policies that protect tenant rights while ensuring a healthy supply of rental properties” comments Williams.
The Labour government’s housing policies will be critical. Initiatives to increase housing supply, support affordable housing, and introduce rent controls will shape the rental market’s future.
Williams predicts that demand for rental properties in Wales will remain strong, driven by limited supply and high tenant competition. It is expected that rents will continue their upward trajectory, particularly in high-demand areas. Landlords who can offer quality properties will benefit the most.
“We are also likely to see the regulatory landscape evolve, with potential new measures from the Welsh Assembly and [UK] Labour government. Staying compliant and proactive will be key for landlords” says Williams.
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Communism! in a word..... or at best suppression? It never works. I don't know about the experience of others in this industry but we have found that tenants are the ones that are offering additional rent to secure a property and is not driven by the agent. Increase the number of properties available to rent and this issue will address itself without government capping intervention. This has all come about due to the squeeze placed on Landlords throughout the years, where many have sold up.
Keith. I'm staggered that Government policy on killing off private btl owners via tax and legislation doesn't seem to be identified as a massive contributory factor in rent increases by tenants or government. This new government pledging to ban no fault evictions minimum epc ratings etc will make things worse for both tenant and landlords.
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