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14/7/25 8:13 pm
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Propertymark has urged the Welsh Government to take urgent action to encourage investment in the private rented sector.
Responding to a consultation on its Draft Budget for 2026–27, Propertymark 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. It believes the 1% increase to 4% in Land Transaction Tax surcharge for additional properties may already have deterred landlord investment.
Propertymark suggests that the Green Homes Wales Scheme should be opened up to the PRS, especially because property in Wales may be adversely impacted by MEES due to lower property values in Wales and less return on investment. It says ministers should reintroduce targeted tax allowances, such as a modernised Landlord’s Energy Saving Allowance, to offset the cost of upgrades, and ensure future schemes avoid a one-size-fits-all approach.
It adds that tailored loans and grants should be available to PRS landlords via the Development Bank of Wales, especially for rural and hard-to-decarbonise properties, to help meet MEES without reducing rental supply or increasing rents unsustainably.
It suggests that the National Empty Homes Grant Scheme, which offers a grant of up to £25,000 to support owners bring empty properties back into use and fit for human habitation, should be expanded to private landlords providing they bring the property back into use for a private tenant within a timeframe.
Propertymark also believes employers could be encouraged to offer a deposit loan scheme to offer staff an interest free way to pay for their deposit when moving into private rented property.
The next version of the Budget will be published next month and MSs will vote on a final Budget in January.
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