The National Residential Landlords Association (NRLA) has issued a robust response to the "Fair Rents & Adequate Housing" consultation by the Welsh government, expressing deep concerns about the potential introduction of rent controls and the adverse impact it could have on the private rental sector in Wales.
In their comprehensive submission to the consultation, the NRLA outlines the manifold drawbacks associated with rent controls, emphasising how such measures can have far-reaching consequences by influencing the behaviour of landlords and constraining the overall supply of housing in the market.
For a detailed examination of the NRLA's arguments and insights, you can access their full consultation submission by clicking here.
Ben Beadle, the Chief Executive of the NRLA, offered his perspective on the consultation response, saying: "At a time when the Welsh private rental sector is grappling with a severe shortage of housing supply, it is challenging to envisage any policy measure that could potentially exacerbate the current situation more than the implementation of rent controls."
Historically, wherever rent control measures have been put into practice, the outcomes have tended to be discouraging for property investors. Instead of stimulating investment and encouraging the development of much-needed rental properties, such interventions have often had the opposite effect.
Beadle further highlighted that if the Welsh government is genuinely committed to addressing the issues of high rents and the scarcity of available housing, they must consider concrete actions to bolster housing supply. One practical step in this direction would be to endorse the NRLA's call for pro-growth initiatives aimed at incentivizing investments in rental properties.
In closing, Beadle emphasized the importance of adopting progressive policies tailored to the unique challenges of the housing market. Such policies would empower private landlords to continue offering the high-quality rental accommodation that tenants in Wales require and deserve, ensuring the vitality and sustainability of the private rental sector in the region.
Taken from Property Industry Eye | https://propertyindustryeye.com/government-warned-landlords-will-flee-the-market-if-rent-controls-are-introduced/