Serious concerns have been raised over the viability of the Welsh Government’s Rent Smart Wales licensing scheme – just days before it is set to come into force.
Welsh Conservatives have warned that the system is “totally unprepared” for its launch – with Mark Isherwood AM warning that the team is “understaffed, under-resourced, and completely overwhelmed by demand”.
From 23rd November, all self-managing landlords owning 20 or fewer properties in Wales will need to have registered with Rent Smart Wales and have a licence.
To register, they must take a test online for a £30 fee – or in a classroom for £130. On top of this, they are required to pay a £144 fee for a licence, lasting 5 years.
This charge penalises those without access to good broadband, especially amongst older people and rural communities.
Furthermore, many landlords have experienced difficulties using the online system, reporting complications with the website. And there are serious concerns that the Welsh Labour Government has underestimated the size of the challenge ahead.
A recent Written Question by Andrew RT Davies AM (see notes to editors) found that 32,030 landlords have registered with Rent Smart Wales – of which just 2,756 are fully licensed and 2,962 currently have applications in process.
According to the Residential Landlords Association, there are an estimated 130,000 landlords in Wales.
Aberconwy AM, Janet Finch-Saunders, said:
“When the Welsh Government brought forward this scheme, the Welsh Conservatives were quick to point out that it would do little to solve housing problems and risked being impractical, while putting excessive burdens on landlords.
“Whilst no one would dispute the need to ensure landlords are checked to be meeting proper standards, it is clear that our fears regarding Rent Smart Wales have been realised.
“It is a complete shambles that with less than 3 weeks before the licences become compulsory, it appears that only a fifth of landlords who need to have registered will have done so.
“This shows the scheme is unworkable and risks adding to rather than combatting housing shortages.”
North Wales AM, Mark Isherwood, said:
“Welsh Conservatives have consistently opposed this flawed legislation, and I have long warned the Welsh Government that this would happen.
“It’s clear that Labour ministers totally underestimated the size of this challenge, and with depressing inevitability the scheme is now descending into chaos.
“With just days to go the system appears totally unprepared, and it’s team is understaffed, under-resourced, and completely overwhelmed by demand.
“The Welsh Government should take decisive action and reverse this legislation. Hard pressed local authorities need to be able to focus their limited resources on targeting those landlords who cause problems – not registering and regulating those who proactively sign up.”
Notes to editors:
Please note Written Assembly Questions below from Andrew RT Davies which confirm the latest registrations and licenses for Rent Smart Wales.
It is also worth noting that the Welsh Conservatives voted against the Housing Wales (Act) 2014, the consequent Rent Smart Wales Code of Practice and the Renting Homes (Wales) Act.
For info: Mark Isherwood’s speech at Renting Homes Bill Stage 4 - http://www.assembly.wales/en/bus-home/pages/rop.aspx?meetingid=3486&assembly=4&c=Record%20of%20Proceedings#257074
FOR ANSWER BY THE CABINET SECRETARY FOR
COMMUNITIES AND CHILDREN
ON 25 OCTOBER 2016
Andrew RT Davies (South Wales Central): Will the Minister confirm how many private landlords owning 20 properties or fewer there are currently in Wales? (WAQ71260)
Carl Sargeant: There is currently no accurate figure for the number of landlords in Wales although Rent Smart Wales will help address this problem in due course. As at 20 October 2016, 32,030 landlords registered with Rent Smart Wales have 20 or less rental properties.
WRITTEN ASSEMBLY QUESTION
FOR ANSWER BY THE CABINET SECRETARY FOR
COMMUNITIES AND CHILDREN
ON 25 OCTOBER 2016
Andrew RT Davies (South Wales Central): Will the Minister confirm how many private landlords currently hold licences with Rent Smart Wales? (WAQ71261)
Carl Sargeant: As of 19 October 2016, 2,756 landlords hold licences with Rent Smart Wales. A further 2,962 applications are being processed.