Landlords could be forced to sell up without support to meet ambitious energy efficiency targets, decimating the pool of available properties and forcing up rents, the NRLA has warned.
In its submission to the Senedd ahead of the Welsh Government’s Draft Budget 2026–27, it says landlords need access to low-cost lending if their properties are to achieve an EPC Band C by 2030. The NRLA wants it to work with the Development Bank of Wales to provide low interest retrofit loans to support PRS landlords. It says this will ensure there are enough rental homes to go round and reduce tenants’ energy bills while improving housing quality.
It also wants a full rebate of the 5% Land Transaction Tax levy on additional residential properties, if they are made available to rent through Leasing Scheme Wales. An evaluation of the first phase, which sees landlords commit to long-term leasing arrangements with local authorities, found there was little to encourage landlords of higher quality homes to take part.
The NRLA believes more investment is needed so that local authorities and fire services are properly equipped to meet their responsibilities under the Homelessness and Social Housing Allocation Bill and the Building Safety Bill.
Propertymark made similar comments in its submission, suggesting that tailored loans and grants for energy efficiency work should be available to PRS landlords via the Development Bank of Wales. And it warns that without tax reform, the continued loss of landlords will exacerbate affordability issues for tenants and increase pressure on councils to house more people in the social sector.
The next version of the Budget will be published later this month and MSs will vote on a final Budget in January.
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