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In Scotland, rent controls have had a severe negative impact on the private rental sector, including a decrease in the availability of rental units and an increase in rental prices, ultimately harming tenants. Propertymark members warn that similar consequences could occur in Wales if the government adopts comparable measures.

Tim Thomas, Policy and Campaigns Officer at Propertymark, expressed disappointment in the proposal of rent control as a solution to housing issues. "In a debate broadly supportive of enshrining housing sufficiency in law, it's disappointing to discuss introducing destructive rent control measures. We believe that following Scotland's example would be a mistake for Wales," said Thomas.

Thomas emphasized that the Welsh government should focus on addressing housing issues by strengthening existing legislation, removing barriers to building more homes, and improving data collection methods. He suggested, "A fairer solution would be to implement progressive property taxes that incentivize the private rental sector to provide affordable housing."

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Moreover, Propertymark proposed that the Welsh government could stimulate the housing market by reducing the level of land transaction tax on landlord properties or exempting the additional 4% land transaction tax on new long-term rental properties. These measures could provide more support for landlords, enabling them to offer housing for vulnerable groups and the elderly, and assist in the decarbonization of the housing stock.

The Welsh government's green paper has received 371 responses, covering issues related to rent, tenant and landlord behaviors, affordability, and methods by which the Senedd can drive improvements in housing sufficiency over time. The government is seeking evidence on how to achieve fair rent and affordability goals in Wales.

As consultations progress, Propertymark will continue to work with the Welsh government to find solutions for building more suitable housing and to avoid the potential risks associated with rent control. They believe that by improving relationships between local authorities, real estate agents, and landlords, as well as enhancing the quality of data and intelligence in the sector, more rational ways to improve housing sufficiency and affordability can be found.

Propertymark members' stance demonstrates their commitment to maintaining the health and vitality of the Welsh rental market and highlights the importance of thorough and detailed consideration when formulating policies with broad implications. As the Welsh government continues to explore various strategies to solve the housing crisis, the key will be finding a balance that both protects tenant rights and incentivizes landlords and developers to invest in the housing market.