The Council of Mortgage Lenders has submitted a reply to Welsh Government consultation on the Government White Paper ‘Renting Homes: a better way for Wales’ citing previous RLA comments as reasoning for being against some of the proposals.
Most pertinently the Council of Mortgage Lenders (CML) argued that the current legislation in place for the private rented sector in Wales was not yet at the level of complexity that would warrant a complete overhaul that is proposed within the white paper.
The CML cited the RLA’s projected cost of £45 million needed to implement reforms proposed in the paper. The CML also echo RLA comments that complexity could very well do with being simplified, but does not need to be done in such a way proposed in the paper.
“We are also aware of the RLA’s view that key tenure reform objectives could be achieved in a less radical way, within existing legislation, potentially avoiding great disruption and expense for the sector.”
Abolition of mandatory possession Ground 8 for serious rent arrears is one area in particular that the CML do not agree with, and argue that this is one of the last vestiges landlords have for practical control over their properties. CML say:
“We believe that abolishing Ground 8 will have a negative impact on risk judgements of existing and potential investors in the sector; it is also possible that rating agencies and financial regulators could take this into account in credit-worthiness and risk ratings for the sector in Wales. Increased risk will be reflected in increased pricing. This could make it more difficult for Welsh Housing associations to raise the private finance they need for new development.”