The Wales Green Party has announced plans to introduce rent controls in Wales as part of its manifesto for the upcoming Senedd election, proposing a one-year rent freeze followed by local authority-administered rent caps.
Party leader Antony Slaughter outlined the proposals, which would allow the Welsh Government to approve ‘rent pressure zones’ where local councils could apply caps on rental costs. The manifesto also includes plans to replace council tax with a land value tax.
Proposed rent control framework
Under the Green Party’s proposals, Wales would implement a one-year rent freeze across the rental sector. Following this initial freeze, local authorities would gain powers to designate rent pressure zones where caps would apply.
According to the manifesto, rent increases would only be permitted where landlords deliver improvements to properties, particularly upgrades that enhance energy efficiency and reduce carbon emissions.
The party also pledged to ban no-fault evictions in Wales, aligning with similar measures already implemented in Scotland. In England, no-fault evictions are set to be banned in May, with reports showing a 65% surge in such evictions ahead of the deadline.
Market implications
Rent control policies have historically drawn criticism from property industry professionals and economists. Such measures are often associated with reduced housing supply, decreased rental quality, and diminished incentives for new construction.
Industry analysts note that rent caps can discourage landlords from maintaining properties or bringing new units to market. The measures may also reduce tenant mobility, as renters are incentivised to remain in rent-controlled properties rather than relocate, potentially constraining overall rental supply.
Slaughter said the cost of living crisis was ‘paramount’ and that housing affordability was central to addressing it. ‘Everyone has a right to a safe, warm, affordable secure home. That isn’t the case for so many people,’ he stated.
Electoral prospects
The Wales Green Party claims opinion polls suggest the party is positioned to elect candidates to the Senedd for the first time in the Welsh Parliament’s history.
The proposals represent a significant policy divergence from current Welsh housing policy and would place Wales alongside Scotland in implementing rent control mechanisms, should the party gain sufficient representation to influence housing legislation.
The manifesto’s housing policies come as the property sector faces broader regulatory changes across the UK, including ongoing legal challenges to leasehold reforms and structural changes within major lettings firms.
