Wales has a new political landscape — and landlords should be paying close attention. The private rented sector could be heading for another round of reform, with no-fault possession, rent controls, pets, housing standards and tenant rights all back in the spotlight.
The recent Welsh election result has changed the conversation around renting in Wales almost overnight.
Plaid Cymru has emerged as the leading force in the Senedd, with Rhun ap Iorwerth becoming First Minister of the first Plaid-led administration in Welsh history. But this is not a government with a free hand. Plaid does not hold a majority, which means any major housing or rental reform will need support from other parties.
For Welsh landlords and letting agents, that creates a complicated picture.
There is political pressure for stronger tenant protections. There is also concern that pushing too far, too quickly, could damage rental supply at a time when available homes are already under pressure.
The National Residential Landlords Association has summed up the position clearly, saying: “change is clearly coming, but is not imminent.”
You can read the NRLA article here: Welsh Elections: What happens now?
That is probably the key message for landlords. Reform is likely. But it will need legislation, consultation, scrutiny and a practical implementation period before anything becomes day-to-day reality.
A new government, but not a blank cheque
The election has produced a very different Senedd.
Plaid Cymru now leads the Welsh Government, but it does not have enough seats to pass major legislation on its own. Reform UK has become a major opposition presence, while Labour has been reduced to a much smaller group than it has traditionally held in Wales.
That matters because housing law is politically sensitive. Any attempt to reform the private rented sector will need votes from outside the Plaid group.
In practical terms, Labour is likely to be the most important party for Plaid to work with on housing. The Conservatives and Reform are unlikely to back a heavily interventionist rental agenda, while the Greens and Liberal Democrats do not have enough seats by themselves to carry Plaid’s programme through the Senedd.
So the future of renting in Wales may depend less on what Plaid promised during the campaign and more on what Labour is willing to support.
That could temper some of the more radical reforms. But it does not mean landlords should relax.
Section 173 could be in the firing line
The biggest issue for landlords is likely to be Section 173.
In Wales, Section 173 of the Renting Homes (Wales) Act 2016 is the main no-fault possession route. It is not identical to the old Section 21 system in England. It already comes with a much longer notice period and more restrictions.
In Wales, landlords generally have to give six months’ notice under Section 173, and it cannot usually be used in the first six months of the occupation contract. That means Welsh contract-holders already have greater protection than tenants had under the old English Section 21 regime.
But politically, “no-fault eviction” remains a powerful phrase.
Plaid Cymru campaigned on ending no-fault evictions in Wales. Labour has already abolished Section 21 in England through the Renters’ Rights Act, so it may be difficult for Welsh Labour MSs to oppose a similar direction of travel in Wales.
That makes reform of Section 173 one of the most likely areas for change.
For landlords, the key question is what replaces it.
If the Welsh Government removes or restricts Section 173, landlords will need clear, workable and reliable possession grounds. They must be able to regain possession where they need to sell, move back into the property, house a family member, deal with serious rent arrears, tackle anti-social behaviour or resolve serious breaches of contract.
Removing no-fault possession without strengthening the alternative routes would be a major concern for the sector.
Rent controls: big political noise, but harder to deliver
Rent controls are another major issue.
Plaid Cymru has previously proposed limiting annual rent increases to the lower of wage growth, consumer price inflation, or another defined benchmark. The Welsh Greens have gone further, with support for a rent freeze followed by Rent Pressure Zones.
For tenants facing rising costs, these ideas may sound attractive. For landlords, they raise serious concerns.
Rent controls can create pressure on supply. If landlords cannot adjust rent to reflect mortgage costs, repairs, insurance, regulation, taxation and local market conditions, some may decide the numbers no longer work.
That could mean more landlords selling up, fewer homes available to rent, and more competition between tenants for the properties that remain.
There is also a risk that landlords who currently rent below market levels may feel forced to increase rents earlier than planned if they fear future restrictions. This is one of the unintended consequences often raised in rent control debates.
However, rent controls may be harder to pass than reforms to possession.
Labour at UK level has been cautious about rent controls, and that may influence Welsh Labour’s position. If Plaid needs Labour support to legislate, a full rent control system may face political resistance.
That does not mean the idea will disappear. It may come back in a softer form, such as tighter rules on rent increases, more data collection, local affordability monitoring, or stronger rights for tenants to challenge increases.
Landlords should watch this area closely.
Pets are likely to move up the agenda
One reform that may have a smoother path is the right for renters to request pets.
The Renters’ Rights Act in England gives tenants stronger rights to ask for a pet, with landlords unable to refuse unreasonably. Plaid has used similar language in relation to Wales.
This is the kind of measure Labour may be more willing to support, because it mirrors reforms already introduced in England.
For landlords, this does not necessarily mean every pet request must be accepted. But it could mean refusals need to be reasonable, evidenced and properly recorded.
A practical approach will be important. Landlords may need to think carefully about the type of property, lease restrictions, allergies in shared accommodation, animal welfare, potential damage, cleaning requirements and insurance.
The best protection is likely to be clear documentation, sensible conditions and a fair decision-making process.
Welsh renting is already different from England
It is important to remember that Wales already has its own rental system.
The Renting Homes (Wales) Act changed the language and structure of renting. Tenants are generally known as contract-holders. Tenancy agreements are occupation contracts. Landlords must comply with Welsh-specific rules around written statements, fitness for human habitation, notice periods and Rent Smart Wales registration and licensing.
This means Wales is not simply waiting to copy England.
In some areas, Wales already gives renters more protection than England did before the Renters’ Rights Act. In other areas, England is now moving ahead, particularly on the abolition of no-fault eviction, stronger pet rights, rent bidding restrictions, and tenant protections against certain forms of discrimination.
The political pressure in Wales may now be to close those perceived gaps.
That could mean more Welsh-specific reform rather than a straight copy of the English model.
Housing standards could become tougher
Another area to watch is property condition and housing standards.
There has already been discussion in Wales about improving standards in the private rented sector, including whether a version of the Welsh Housing Quality Standard could be extended beyond social housing.
If that happens, landlords may face higher expectations around damp and mould, heating, insulation, safety, repairs and energy efficiency.
This could be a major practical issue.
Many landlords support decent standards, but the cost of upgrades can be significant, especially for older Welsh housing stock. Terraced homes, rural properties and older converted buildings may be more difficult and expensive to improve.
If new standards are introduced, landlords will need realistic timescales, clear guidance and a sensible approach to enforcement.
A rushed system could push more landlords out of the market. A planned system could improve housing quality while allowing landlords to budget properly.
Rent Smart Wales could become even more important
Wales already has a central landlord registration and licensing structure through Rent Smart Wales.
That gives the Welsh Government a framework England is still developing through its new private rented sector database.
Future reforms in Wales may build on Rent Smart Wales rather than creating a completely new system.
This could mean more data collection, more compliance checks, closer monitoring of rents, or new information requirements for landlords and agents.
For professional landlords and letting agents, this makes record-keeping even more important. Documents, certificates, inspection records, rent histories, repair logs and communication trails may become increasingly central to proving compliance.
The days of informal letting are fading fast.
What landlords in Wales should do now
Landlords should not panic, but they should prepare.
No major reform is likely to happen overnight. Any serious change will need proposals, consultation, Senedd scrutiny and implementation time.
However, the direction of travel is clear. Welsh rental policy is likely to move towards stronger tenant rights, tighter regulation and more scrutiny of landlord decisions.
Landlords should consider reviewing:
- Section 173 processes and possession planning
- Rent levels and rent increase procedures
- Occupation contracts and written statements
- Pet policies and how requests are handled
- Repair records and property condition
- Rent Smart Wales registration and licensing
- Energy performance and future upgrade costs
- Arrears procedures and evidence gathering
- Insurance and risk management
Letting agents should also prepare for more questions from landlords who are unsure how Welsh reforms may affect them.
This is an opportunity for good agents to show their value. Landlords will need clear guidance, proper documentation and practical support.
The risk for Wales: reform without supply
The biggest danger is that Wales focuses heavily on regulation without solving the supply problem.
Tenant protections matter. But renters also need homes to rent.
If reforms make landlords feel they cannot regain possession when necessary, cannot cover rising costs, or cannot manage risk effectively, some will leave the sector.
That would reduce supply and could push rents higher for the remaining properties.
The challenge for the new Welsh Government is to avoid that trap.
A healthy rental sector needs good standards, fair rules and tenant security. But it also needs landlords willing to invest, maintain properties and keep homes available.
If policy becomes too one-sided, tenants may ultimately pay the price through fewer choices and higher competition.
The bottom line for Welsh landlords
The Welsh election result is a turning point for the private rented sector.
The most likely areas of change are no-fault possession, pet rights, rent increase rules, property standards and stronger tenant protections. Rent controls remain a major political issue, but may be harder to pass in their strongest form.
For now, landlords should keep calm but stay alert.
Nothing changes immediately. But the next few years could reshape renting in Wales again.
The landlords best placed to cope will be those who keep excellent records, maintain good standards, understand their legal duties, price rents realistically and prepare early for reform.
Wales has already been through one major rental law overhaul. Another may now be on the horizon.
Disclaimer: NetRent does not provide legal advice. This article reflects our understanding of rental property law and current market developments. Landlords should seek independent professional advice before making decisions about their property, tenancy or compliance obligations.
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