Renters in Wales could get compensation for no-fault eviction

Emily Price

A Senedd Committee is calling for private renters to be given more rights, including compensation if they are evicted.

The Local Government and Housing Committee’s inquiry into privately rented homes is urging the Welsh Government to tackle numerous issues in the housing market to make renting a better experience.

In a report published today (October 22) the Committee urged the Welsh Government to ease the pressure on tenants facing a no-fault eviction by looking into a proposal where landlords would give renters the last two months’ rent of their tenancy as compensation.

‘Shock’

Jeffrey Walters from Newport was served a no-fault eviction notice by his landlord in 2022.

He said: “I felt like the world had collapsed in on us – it was one of the most stressful times of my life. One day out of the blue, the owner of the property came to the house and said he was planning on evicting us and we needed to make plans to leave. It came as such a shock.

“As a single parent of two children, it didn’t just affect me, it affected my children as well. They kept on saying ‘What’s the point of going to school if we’ll be living somewhere else in a few weeks?

“Trying to find a new home for us all was so hard – it was hurdle after hurdle with each barrier being bigger than the last and you never knew when you’d gotten over the last one.

The Welsh Government told the Committee that outright banning no-fault evictions would contravene human rights laws and that the existing six-month warning a landlord must give a tenant means that Wales currently has the toughest protections for tenants in the UK.

The Committee told the Welsh Government that by April 2025 they should publish their reasoning on whether two-month rent compensation for those facing eviction is feasible.

With a law banning no-fault evictions currently making its way through the House of Commons, the Committee called on the Welsh Government to monitor the situation in England to ensure that tenants in Wales don’t end up worse off.

The report also found widespread discrimination against people on benefits by landlords.

Deposit

A 2022 survey by Shelter Cymru showed that 37 per cent of landlords in Wales say they do not, or prefer not, to let to tenants on benefits.

Some landlords demand several months’ worth of rent in advance which can make it near impossible for people on low incomes to afford to rent.

Another barrier faced by Jeffrey while he was looking for a new home, was regarding his guarantor.

He said,”When I was trying to find another place to stay, I had to give a holding deposit of over £200 to a company while they checked over my application.

“But what they kept hidden in the fine print was that they wouldn’t accept a guarantor who was abroad, so they rejected my application and kept my money – just because my guarantor had answered his phone when he was on holiday.”

The report found that finding an acceptable guarantor is a severe issue for many people leaving care, or for refugees and people who have moved to Wales from outside the UK.

The Committee has called for the Welsh Government to regulate the sector to remove these types of financial and bureaucratic barriers that tenants face.

During its inquiry, the Committee said it heard evidence of discrimination by landlords of potential tenants including those with pets.

The Welsh Government has been urged to launch a myth-busting campaign with landlords to eliminate discrimination against pet owners.

Pets

Many landlords fear that allowing pets in their property increases the risk of damage, but the Committee was told that polling shows around three-quarters of landlords who allow pets reported no issues at the end of the tenancy.

Evidence given to the Committee also outlined how landlords could make more money renting to pet owners as they are likely to stay in a property longer.

The Committee heard that reducing discrimination against pet owners would stop people having to choose between giving their pets away or turning down accommodation.

Chair of the Local Government and Housing Committee, John Griffiths, said: “Having a safe place to call home is a fundamental part of people being able to live happy, healthy and fulfilling lives, regardless of whether that home is owned or rented.

“Unfortunately, this Committee heard far too much evidence of people unable to find a stable home because they were on benefits, couldn’t afford huge up front deposits or had a pet. This discrimination, and the many other barriers in people’s way, must be addressed as soon as possible.

“And despite rules making no-fault evictions harder than they used to be, we know that many people are still living with the possibility of eviction hanging over their heads.

“The private rented sector has to work for both tenants and landlords. This is why we’re urging the Welsh Government to implement our recommendations so that high-quality, affordable homes are available to all.”

A Welsh Government spokesperson said: “Ensuring everyone in Wales has a decent, affordable and safe place to call home is one of our key ambitions and we will be publishing our White Paper on Adequate Housing, Fair Rents and Affordability this month.

“We are grateful to the committee for its report and will be considering the findings and recommendations carefully.”