The Welsh government is facing growing pressure to introduce new strategies aimed at increasing the supply of homes in the private rental sector, as the number of landlords continues to decline.
Propertymark, a leading industry body, is calling for action following the release of new data from Rent Smart Wales, which highlights the extent of the issue.
According to the figures, 17 out of 22 local authorities in Wales have seen a decline in the number of landlords between January 2020 and January 2025. In total, the sector has lost 1,107 landlords over this period.
This trend has raised concerns about the availability of rental properties and the impact on tenants who may struggle to find suitable housing.
The drop in landlord numbers has been linked to legislative changes, most notably the introduction of the Renting Homes (Wales) Act. The Act, which aimed to simplify rental agreements and strengthen tenant protections, has also placed additional obligations on landlords.
Many in the industry believe that the new regulations, combined with increasing costs and economic pressures, have led some landlords to exit the market.
Propertymark is urging the government to consider measures that will support landlords and encourage investment in the private rental sector to prevent further shortages.
With demand for rental homes remaining high, industry experts warn that unless action is taken, the decline in landlord numbers could worsen, putting even more strain on the housing market.
Landlords will exit the market
Propertymark’s policy and campaigns officer, Tim Thomas, has expressed support for the Welsh government’s efforts to regulate the private rented sector, emphasising the importance of fairness for both tenants and landlords.
However, he warned that without the right balance, responsible landlords may leave the market, leading to a reduction in available rental properties. Those who choose to remain may feel compelled to raise rents to offset their rising costs.
Thomas highlighted that the recent data from Rent Smart Wales clearly demonstrates the shrinking size of the private rented sector. He stressed that the Welsh government must carefully assess how future legislation could further impact landlords and tenants alike.
With a significant decline in landlord numbers across multiple Welsh communities, he urged the government to take action to support investment in the sector.
One key recommendation from Propertymark is the introduction of pro-growth taxation policies to encourage landlords to stay in the market and attract new investors.
Specifically, Thomas called for a reduction in Land Transaction Tax for landlord investors, arguing that this would help stabilise the sector and ensure a sufficient supply of rental properties.
He emphasised that without such measures, the continued decline of the private rented sector could lead to long-term consequences, including higher rents and reduced housing availability.
As concerns grow over the future of the rental market in Wales, industry experts are urging policymakers to reconsider their approach and introduce policies that support both landlords and tenants.
Expand the rental housing pool
Propertymark has recently provided its recommendations to the Senedd finance committee’s budget consultation, outlining initiatives aimed at increasing the availability of rental properties in Wales. The organisation believes that expanding the rental housing pool is essential to ensuring a stable and affordable private rented sector (PRS).
Despite these recommendations, Finance Secretary Mark Drakeford has announced a 1% rise in Land Transaction Tax for those purchasing additional properties in Wales. This decision has raised concerns among landlords and property industry experts, who fear it could further discourage investment in the sector.
Meanwhile, the Welsh Government has expressed support for a proposal that would allow tenants facing no-fault evictions to retain their final two months’ rent as compensation. This measure was discussed as part of a separate Senedd investigation into the PRS.
Propertymark has voiced strong opposition to policies that impose additional financial pressures on landlords, many of whom are already struggling with increased taxes, higher borrowing costs, and ongoing maintenance expenses.
The organisation warns that such policies could lead to a reduction in available rental properties, making it harder for tenants to find affordable housing. With fewer landlords in the market, rental prices could rise due to a lack of supply.
Propertymark stresses that the best way to stabilise rents and create a fairer rental market is to focus on increasing housing availability. Encouraging investment in the PRS, rather than burdening landlords with extra costs, is key to achieving this goal.
As the debate continues, industry experts are urging the Welsh Government to reconsider its approach and implement policies that support both landlords and tenants. Without decisive action, the PRS could face further challenges in the coming years.
Propertymark opposed rent caps
Propertymark has played a key role in opposing rent caps as a member of the Welsh Government’s Fair Rents and Adequate Housing Stakeholder Group. The organisation has consistently argued that such measures could have unintended consequences for the private rented sector (PRS).
Their position was reinforced when the recent White Paper on housing policy did not include any proposals for rent controls. This omission suggests that policymakers have recognised the potential drawbacks of imposing caps on rental prices.
Propertymark has warned that implementing rent controls could have worsened the decline in landlord numbers, a trend highlighted in recent data from Rent Smart Wales. The organisation believes that restrictive policies would discourage investment in the sector, leading to a reduced supply of rental properties.
With fewer landlords in the market, tenants could face even greater competition for available housing, ultimately pushing up rental prices rather than stabilising them. Propertymark continues to advocate for policies that encourage long-term investment and support a balanced and sustainable rental market.
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