No Rent Freeze In Wales

Welsh Labour sided on the side of landlords this week as it voted down a call to freeze rents warning it would backfire if homes ended up being removed from the market. Labour Senedd members had been urged by Plaid Cymru to ‘be brave’ during a debate this week by freezing rents and banning evictions this winter. Plaid had jumped on the bandwagon after The Neg reported Scottish Parliament passed legislation to freeze most rents until March 2023.

Unintended Consequences

Ministers have said they will look at what happens in Scotland, but warned of “unintended consequences”. A freeze could prompt landlords to stop letting homes or hike rents before they are frozen, the Welsh government says. Mabon ap Gynfor, Plaid CymruPlaid Cymru’s Mabon ap Gwynfor (pictured) said: “Here today we have a proposal to at least do something to help many of those threatened with homelessness this winter, as opposed to doing nothing.” Housing Minister Julie James said the Welsh government had increased funding to local councils to help tenants with their bills. Instead of freezing all rents – which could have “very serious unintended consequences” – she said the government wanted to “target the support at the people who are most vulnerable and make sure they stay in their homes”. We don’t want to drive landlords away from the sector.” she said. The Welsh government is considering long-term rent controls and has promised to publish proposals on making rent more affordable.

Wild West

But while a rent freeze could be attractive Labour Swansea East MS Mike Hedges said it could encourage landlords to switch to “the Wild West of housing – Airbnb”.

Carolyn Thomas, Labour north Wales MS, said: “The time for a private rent freeze isn’t now. The situation is too volatile, complex and risky under the UK government’s political, economic crisis.”

(Report from industry journal The Negotiator)