The Welsh private rental sector has lost a worrying 1,107 landlords during the past five years, coinciding with tougher rules around evictions and new tenancy agreements.   

New data from Rent Smart Wales found that of the 22 local authorities in Wales, 17 saw a fall in the number of landlords between January 2020 and January 2025, during which time the Renting Homes (Wales) Act was implemented in 2022.

Propertymark believes the figures should prompt the Welsh government to rethink its plans and take further action to boost housing supply in the PRS by encouraging more landlords to join and invest.

However, the cabinet secretary for finance, Mark Drakeford, has announced a 1% increase across all bands for Land Transaction Tax when purchasing an additional property in Wales.

The government has also agreed to let renters keep the last two months of their rent as compensation when experiencing a no-fault eviction.

Counter productive

Propertymark believes implementing more financial penalties for landlords is counterproductive when they are already witnessing substantial increases in tax hikes, mortgage rates, and repair costs, as this could further thwart the supply of rental homes, and cause rents to increase.

Tim Thomas, policy and campaigns officer, explains that although the body supports the Welsh government’s aims in regulating the private rented sector to make it fairer for all, there must be a balance, otherwise good responsible landlords will exit the market and those who remain will be forced to increase rents to cover their escalating costs. 

“The shrinkage of the private rented sector, as proven by this recent Rent Smart Wales data, shows that the Welsh government must strongly consider the impact future legislation will have on the sector,” says Thomas.

“Given these concerning figures from across most Welsh communities, the Welsh government must follow our call for pro-growth taxation and reduce Land Transaction Tax for landlord investors.”