Janet Finch-Saunders MS/AS, the Shadow Minister for Climate Change, warned in the Welsh Parliament that Plaid Cymru and Welsh Labour’s pursual of rent controls could amount to “Welsh Government sanctioned rent increases”.
During a debate in which the Member highlighted the ever-increasing house prices, fuelled by successive Labour Governments’s failing to build enough houses and how it has resulted in the average age of first time buyers being pushed ever higher with “generation rent” being left behind, Janet warned that the Plaid Cymru and Welsh Labour intention to introduce rent controls could see tenants in poorer quality housing because the OECD has found a correlation between countries with the strictest rent controls having a poorer quality.
Speaking in the Senedd on Wednesday the 27th of April, Janet said,
“We need a realistic and supportive approach towards the private rental market. Welsh Labour policy threatens a state sanctioned rent increase which could make the Welsh rental market unbearable for thousands of families across Wales.
“Rent controls have been proven time and time again to not only be ineffective at combatting the issue of affordability, but to have actually been detrimental to the housing market.
“On top of the mountain of existing legislation, further excessive state intervention could lead to landlords being forced out of the sector, resulting in a decrease in the supply of rental homes for those who cannot or are not looking to buy.
“Case studies from around the world demonstrate the damaging effects that the introduction of rent controls can have. Look at San Francisco where the housing supply fell by 15 per cent, while in Berlin rent shot up by almost 10 per cent between 2015 and 2017 following the introduction of rent controls.”
Janet will continue to oppose policies that can lead to rent increases for the duration of this administration.
