Generation Rent has called on all political parties in Wales to commit to protecting renters by limiting rent increases and providing compensation equivalent to two months’ rent for tenants evicted without fault. This demand comes ahead of the Senedd elections next year and highlights ongoing concerns about the security and affordability of private rented homes in Wales.

Background: Eviction protections and compensation proposals in Wales

Generation Rent claims that Welsh renters face a higher risk of arbitrary or “revenge” evictions compared to other parts of Britain, second only to Scotland, which has already banned no-fault evictions. England is also moving towards similar reforms. In Wales, landlords can currently issue a Section 173 notice—the equivalent of England’s Section 21—to evict tenants without providing a specific reason, although tenants benefit from a six-month notice period, the longest in the UK.

Previously, the Welsh government considered a proposal to compensate tenants facing no-fault evictions by waiving their final two months’ rent. However, this plan was dropped amid concerns that it might inadvertently increase rents and homelessness. The government argued that such compensation could discourage tenants from seeking alternative accommodation promptly, potentially increasing demand on homelessness services.

Generation Rent’s proposal for eviction compensation

Generation Rent is urging political parties to include in their manifestos a commitment to require landlords to waive two months’ rent when evicting tenants under no-fault grounds. The group suggests that this rent waiver should occur at the start of the notice period to provide tenants with immediate funds to cover moving costs, such as deposits and overlapping rent payments. According to Generation Rent, the average cost of an unwanted move for a private renter household in Wales is £1,543.

This approach aims to reduce the financial burden on tenants and encourage them to secure alternative accommodation more quickly. Generation Rent argues that this would also give landlords greater assurance of regaining possession within the notice period and reduce pressure on local authorities by lowering homelessness presentations.

Calls to end no-fault evictions and limit rent increases

Beyond compensation, Generation Rent is advocating for the abolition of Section 173 no-fault evictions altogether. They propose replacing this with eviction grounds that require landlords to provide a specified and legitimate reason, while retaining the six-month notice period to protect tenants further. The tenant group acknowledges that the Renting Homes (Wales) Act 2016 has improved renter protections, noting a 58% reduction in accelerated possession claims involving no-fault evictions between early 2023 and 2025.

However, Generation Rent warns that the continued existence of Section 173 notices undermines efforts to protect tenants from unaffordable rent hikes. They argue that renters should benefit from both a lengthy notice period and clearly defined eviction grounds to ensure fairness and security.

Additionally, the group calls for rent increases to be limited to once annually and capped at the lower of wage growth or Consumer Price Index inflation. This measure aims to protect tenants from sudden rent rises that could force them out of their homes.

Implications for landlords and letting agents

For landlords and letting agents, these proposals signal potential changes to the legal framework governing tenancies in Wales. The introduction of mandatory compensation for no-fault evictions and the abolition of Section 173 notices would reduce the flexibility landlords currently have to regain possession of their properties without cause. Rent increase caps could also impact rental income growth, requiring landlords to plan financials accordingly.

Landlords should monitor the upcoming Senedd elections closely, as the policies adopted by the new Welsh government may affect tenancy management practices and eviction procedures. Staying informed about legislative developments will be crucial for compliance and effective property management.

Conclusion

Generation Rent’s campaign highlights ongoing challenges within the Welsh private rented sector, focusing on eviction security and affordability. Their proposals seek to balance tenant protections with landlord interests by providing compensation and clearer eviction grounds while maintaining notice periods. The outcome of these discussions will be important for landlords, agents, and tenants alike.

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