Landlord Law Newsround #415: Rent Smart Wales Success and Renters’ Rights Act Impact

This edition reviews the tenth anniversary of Rent Smart Wales, highlighting its achievements and criticisms. It also examines concerns from landlords about potential delays in energy efficiency improvements due to the upcoming Renters’ Rights Act, alongside government decisions on housing benefit rates and perspectives on the new legislation’s benefits.

Rent Smart Wales Celebrates a Decade of Regulation

The Welsh Government marks ten years of Rent Smart Wales, a regulatory scheme aimed at improving standards in the private rented sector. According to Jayne Bryant, Cabinet Secretary for Housing and Local Government, the scheme has led to “higher standards, better informed landlords and stronger enforcement.”

Since its inception, over 216,000 rental properties have been registered, with more than 50,000 licences issued. Enforcement actions include prosecuting 355 landlords and issuing rent repayment orders exceeding £53,600.

However, some organisations express reservations. The National Residential Landlords Association (NRLA) criticises the scheme’s enforcement approach as not always consistent and describes communication as sometimes “abrasive.” Additionally, concerns have been raised about a decline in the number of rental properties registering under the scheme, suggesting that processes may need simplification to encourage compliance.

Landlords Hesitant to Upgrade EPC Ratings Amid Renters’ Rights Act

With the Renters’ Rights Act approaching, landlords appear cautious about investing in energy efficiency improvements. Data from rental management app August indicates that 62% of landlords plan to reduce expenditure on their properties, while 54% intend to delay or scale back energy-efficient upgrades aimed at improving EPC ratings.

This hesitation is compounded by the absence of confirmed government grants to financially support landlords in undertaking such works. Samuel Cope, founder of August, warns:

“You cannot legislate for higher housing standards while pushing landlords into corners financially. Without targeted support, the Renters’ Rights Act risks slowing down green upgrades across millions of homes.”

Cope also predicts that 97% of landlords will increase rents to offset the higher costs associated with the new legislation.

Housing Benefit Rates Remain Frozen for 2026/2027

The government has confirmed that housing benefit rates will remain unchanged for the 2026/2027 financial year. This decision affects approximately 1.7 million tenants, of whom 53% experience a shortfall between their housing benefit payments and monthly rent. The freeze is expected to widen this gap, placing additional financial pressure on low-income renters.

The announcement came despite calls from over 40 organisations and charities urging the government to increase rates. Ben Beadle, Chief Executive of the NRLA, criticised the freeze, stating it will “hit low-income tenants the hardest” and, combined with other changes in the Renters’ Rights Act, create “a deeply regressive package making life more difficult for renters across the country.”

Positive Perspectives on the Renters’ Rights Act

Not all responses to the Renters’ Rights Act are negative. Angharad Trueman, former president of Propertymark and ARLA, highlights several benefits. She notes that the private rented sector has long been affected by rogue landlords who undercut the market, ignored health and safety regulations, provided substandard accommodation, and flouted licensing rules. This has kept standards low, distorted pricing, and damaged the industry’s reputation.

Trueman believes the new act will address these issues by introducing a national landlord database, stronger enforcement powers, and significantly higher penalties within a “new regulatory environment far less forgiving.” She sees these measures as raising market standards and enabling tenants to identify reputable landlords more confidently through the database and an ombudsman service.

While acknowledging the challenges ahead, Trueman describes the act as a “real opportunity” that will “re-shape the rental landscape.”

Additional News and Resources

• Budget 2025: What Changed for Landlords and What Didn’t
• Ambitious ‘Forest City’ Plan for England
• Top 10 Landlord and Tenant Cases That Still Matter
• Government Rules on Deposits and Rent in Advance under Renters’ Rights Act
• The Decline of the Living Room in Rental Properties
• Landlords Invited to Apply for £20,000 Empty Homes Grants

For ongoing updates, see our Quick News Updates on Landlord Law.

Landlord Law Newsround will return next week with further developments.

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Landlord Law Newsround #415: Rent Smart Wales Success and Impact of Renters’ Rights Act

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Review of Rent Smart Wales’ 10-year impact, landlord concerns over EPC upgrades amid the Renters’ Rights Act, housing benefit freeze effects, and positive outlooks on new landlord regulations.