Residential Landlords Association (RLA)
Welsh Government to trial leasing scheme for private landlords
The Welsh Government recently announced plans to introduce a pilot ‘lease’ scheme for private landlords, designed to increase housing stock in the country.
The scheme would mean that local authorities in Wales would manage private rented stock themselves on behalf of landlords. In return, landlords would receive a guaranteed rental income at Local Housing Allowance rate for five years.
The scheme, will be trailed in three local authorities to prove the concept and provide the necessary evidence base for a model to be developed for roll out across Wales.
In this blog, RLA Wales policy officer Tim Thomas takes a closer look at what we know about the proposed pilot scheme.
This week, the Welsh Housing Minister Julie James AM announced the trial of a new scheme aimed at increasing the housing stock available to local authorities in discharging their housing duties, and more particularly their Part 2 Housing (Wales) Act 2014 duties.
The concept will involve managing Private Rented Sector stock on behalf of landlords, who in return would receive a guaranteed rental income at Local Housing Allowance rate for five years. On face value, the scheme appears to be possibly attractive to some landlords, especially those that have entered the sector ‘accidentally.’
However, the RLA still has several reservations, notwithstanding the very essence that the scheme takes involvement and control over landlords’ property and would appear to be another attempt to take landlords out the loop altogether.
Nevertheless, proposed benefits of the scheme for landlords include:
- Guaranteed rental payments for up to five years at the relevant Local Housing Allowance rate excluding an agreed percentage for the management fee. The management of the property would be though a short-term lease provided by the owner to a Welsh Government appointed and approved agent who would then sub-let properties to tenants.
- A grant of up to £2,000 to make properties fit for human habitation and to put right any Category 1 and 2 hazards under the Housing Health and Safety Rating System.
- If there was any serious structural damage that would require repairs in excess of £2,000, a loan of £8,000 could be obtained at a 0% interest rate.
- Excluding usual wear and tear, any damage made by tenants, will be repaired and costs covered by agents.
- Support on offer will be provided for vulnerable tenants such as budgeting, coping on benefits, mental health issues and employment support.
Latest News from
Residential Landlords Association (RLA)
Fuel poverty – RLA Wales addresses Senedd23/01/2020 11:05:00
A more holistic approach is needed in order to tackle the issue of fuel poverty in Wales’ private rented sector, says the RLA.
MPs urged to prevent discrimination against EU citizens22/01/2020 16:05:00
MPs should back proposals to prevent EU citizens with settled status facing severe difficulties accessing healthcare, housing, and employment a coalition of groups representing EU citizens, immigrants and landlords argue.
Government announces new package of measures to improve building safety22/01/2020 12:33:00
The Government has announced that a new building safety regulator will be established, as part of a new package of measures designed to improve building safety in residential blocks.
Fire safety, Brexit and benefits: your political update21/01/2020 16:25:00
In today’s politics update we look at the latest from MHCLG on fire safety, Lords’ backing for an amendment to provide EU citizens with settled status with a physical document to prove it, latest on the shared accommodation rate and the findings of a new report on Universal Credit.
RLA opposes plans to renew additional HMO licensing scheme in Cardiff20/01/2020 13:25:00
The RLA has opposed plans put forward by Cardiff Council to renew an additional HMO licensing scheme in the city.
BLOG: Welsh Government gives indications as to standards required once Renting Homes is in force17/01/2020 09:25:00
This week, the Government proposed detailed regulations for enforcing mandatory five-year electrical safety checks in the private rented sector in England from July this year.
MP praises RLA campaign, RICS rent rise warning, mayor questioned and call on affordable homes16/01/2020 16:25:00
In today’s politics roundup we look at the MP who is praising the RLA’s work in raising standards, RICS’ warning that an imbalance of supply and demand could see rents rise – and a call for more affordable homes to rent and buy.
London courts need urgent reform warn landlords16/01/2020 09:05:00
Courts across London are failing to cope with the volume of landlord repossession cases they are hearing.
Average rents, housing court and right to rent15/01/2020 16:25:00
In today’s political update we look at the latest ONS figures, calls by a senior member of the Labour party for a dedicated housing court and confirmation that the government does not plan to issue those with EU settled status with physical documentation to help the access rental homes.