Tackling the Housing Challenges in Wales – A Guide for Tenants and Landlords

The housing landscape in Wales is undergoing significant changes, with both tenants and landlords facing new challenges and opportunities. Whether you're a tenant or a landlord navigating new regulations, it’s important to stay informed about the latest developments in housing policy. Let’s explore some key points from the recent discussions in the Local Government and Housing Committee.

1. A Decent Home for Everyone

The Welsh Government’s vision, as outlined by Jayne Bryant, is clear: every individual should have access to a decent place to call home. Housing isn't just about having a roof over your head—it plays a vital role in health, well-being, and quality of life. For landlords, this means being part of a solution that ensures homes are not only affordable but also meet high quality standards.

2. The Affordability Challenge

Affordability remains a major concern, especially considering a recent report by Audit Wales. For tenants, the good news is that the Welsh Government (WG) has accepted (in principle) seven key recommendations to tackle housing affordability issues. These will likely lead to better financial support and housing options in the future.

It’s essential to keep an eye on how these recommendations evolve and whether additional regulatory measures will be introduced.

3. Unmet Housing Needs and the Data Gap

Wales is in the process of better understanding its housing needs. A 5-year housing conditions survey is being scoped to help gather crucial data. For tenants, this means future policies could be more targeted and effective in addressing the specific housing challenges in your area.

For landlords, having accurate data on housing conditions will also be beneficial. It can provide clarity on where demand lies and guide decisions on property investments or improvements.

4. Shortage of 1-Bedroom Homes

One of the more pressing concerns is the shortage of 1-bedroom homes across Wales. For tenants, especially young people or single people, this means tougher competition for suitable, affordable properties.

Some landlords have carried out conversions of larger properties into smaller units to begin tackling this. Government support may be available to help you bring other properties up to standard, and doing so could address a key housing shortage.

5. Opportunities in Acquisitions and Renovations

A major opportunity for both landlords and tenants lies in property acquisitions and the conversion of existing spaces. For instance, there’s significant potential in housing above shops. In urban centres like Newport, there have been renovations which have successfully transformed unused spaces into viable homes.

Acquisitions are definitely a quicker method to meet housing needs, but landlords must be mindful that standards must be maintained. With a minimum standard around fitness for human habitation (FFHH).

6. Flexibility in Housing Standards

Meeting the Welsh Housing Quality Standard (WHQS) can be challenging, but the Welsh Government is showing flexibility, especially for older properties. Tenants can expect better quality housing as these standards are enforced, but landlords also benefit from the government’s pragmatic approach, which acknowledges that not every property can meet these standards immediately.

For landlords, this flexibility means properties can be gradually improved while still being compliant as part of TACP grant. Whether acquiring new properties or upgrading existing ones, staying as close as possible to WHQS is essential.

7. Addressing the Housing Gap

A critical issue highlighted by the Audit Wales report is the significant financial gap in housing investment. Without additional funding, Wales could fall 4,000 homes short of its 20,000 targets. This shortfall will affect tenants directly, as fewer affordable homes will be available.

Landlords and developers, on the other hand, should be aware that this funding gap might lead to increased pressure on private investments. If the government fails to bridge this financial gap, private sector involvement in housing development may become even more crucial. This could mean more opportunities but also more competition and regulatory oversight.

8. Rent Policy Changes

The rent policy in Wales is under review to ensure it remains fit for purpose. Tenants should keep an eye on this, to ensure that their voice is represented in shaping this through Tenant Pulse.

9. Land Acquisitions and Section 106 Agreements

For landlords and developers, there are plans by the Welsh Government investigate ways of purchasing land with the assistance of Savills, a move that could open up more opportunities for developments. Additionally, Section 106 agreements, which require developers to contribute to affordable housing, are being tightened to prevent builders from renegotiating terms once planning approval has been granted.

Final Thoughts

The housing sector in Wales is facing both challenges and opportunities. For tenants, these developments mean more affordable and higher-quality housing options could be on the horizon. For landlords, staying informed and flexible will be crucial as policies evolve and new funding opportunities arise.

Understanding these changes is essential to navigating the evolving Welsh housing landscape. Keep an eye on upcoming policy shifts and be prepared to adapt to ensure that both tenants and landlords can benefit from a better housing in Wales.