The Welsh government has rejected a recommendation that would have required landlords to provide two months’ rent as compensation to tenants upon serving a Section 173 ‘no-fault’ possession notice.
The proposal, which suggested that tenants could retain the last two months’ rent as compensation, raised significant concern within the sector – particularly that it could deter future investment.
By rejecting it, the Welsh government has recognised the need to balance tenant protections with landlords’ rights – helping to maintain sector stability and ensuring landlords can continue to act lawfully without fear of arbitrary financial penalties, according to the National Residential Landlords Association (NRLA)
Ben Beadle, chief executive of the NRLA, commented: “We welcome the Welsh government’s common sense decision to drop proposals that would have imposed arbitrary compensation payments on landlords using legitimate grounds for possession.
Confidence in the Welsh private rented sector has been knocked significantly in recent years, but the decision to reject this measure outright is step in the right direction. I am delighted that our concerns have been listened to.”
Propertymark has also responded to the Welsh government’s decision to reject the proposal to give two months rent relief to tenants in receipt of a Section 173 possession notice.
Tim Thomas, policy officer at Propertymark, commented: “We are pleased that the Welsh Government agreed with our concerns and have rejected the proposal. Propertymark have campaigned against this proposal right from the start. We immediately wrote to the Cabinet Secretary with our concerns and were one of the groups that took part in discussions with Welsh Government officials.
“We used the opportunity to highlight to the Welsh government that if this proposal went ahead, it could result in less supply of privately rented accommodation in Wales, with the propensity of increased rents for tenants. This was not a practical solution for tenants, especially for those who are in receipt of benefits and pay their rent through managed payments.
“The proposal also gave no regard for the ongoing costs landlords have in sustaining tenancies including mortgage and insurance costs. There have been significant changes in recent years to legislation in Wales and we are keen to continue to work with the Welsh Government to ensure these bed-in and landlords, tenants and agents have time to understand and apply the existing rules before further reforms are looked at.”
You can read the Welsh government’s response to the recommendation in full here.
Read the orginal article: https://propertyindustryeye.com/proposed-plans-for-landlords-to-compensate-evicted-tenants-rejected/
