Landlords in Wales braced for tax hikes and rent controls

Welsh landlords are likely to be hit by rent controls and surging council tax after a co-operation deal was signed by the Labour-led Welsh government and Plaid Cymru.

While details have yet to be confirmed, Plaid Cymru previously campaigned for a 200% council tax surcharge on second homes.

Welsh Labour has talked up the prospect of a ‘rent cap’ which will prevent rents from being increased by more than inflation per year.

Landlords have already spoken out against the proposals, which many say could result in private investors selling up their properties, resulting in tenants having a lack of properties to choose from.

Gillian Owens, a 65-year-old landlord who has a portfolio of seven buy-to-lets in Wales, told the Telegraph: “Rent controls drive perverse activity. They will just drive landlords out of the market.

“We have talked about starting to sell up, slowly but surely.”

Another landlord in the country, 56-year-old Ros Beck, said: “I haven’t put my rents up for two years, but when the deal was announced, one of my landlord friends said ‘get your rents up quick’ to me.”

Labour and Plaid Cymru formed an alliance due to the former not having a working majority.

The partnership is set to come into force from December 1st and run for three years, providing Plait Cymru members vote for it.

The NRLA has previous spoken out about rent controls, saying: “Evidence from across the world shows rent controls do not work.

“They make it harder for renters to find an affordable home, encourage rent rises, see housing conditions deteriorate and can lead to a reduction in the overall number of homes to let as landlords leave the market.

“We would encourage the Welsh government to resist any moves to introduce them.”

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